Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accelerator, Inc. manufactures a fuel additive called surge. The company produces and sells 22,000 containers of surge each month. The company has established the following

image text in transcribed
Accelerator, Inc. manufactures a fuel additive called surge. The company produces and sells 22,000 containers of surge each month. The company has established the following standards related to direct materials for each container of surge produced: standard quantity standard price direct materials 5 gallons $7.00 per gallon The following information is available for surge for the month of August: 1. 130,000 gallons of chemicals were purchased at a total cost of $968,500. At August 31, Accelerator, Inc. had 24,900 gallons of chemical available in the storeroom. 2. At August 1, Accelerator, Inc. had no inventories of any type on hand. Calculate the direct material usage variance for August. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000). Quiz scores will not be adjusted for failing to follow these directions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Accounting

Authors: Carl S. Warren

1st Edition

0538870850, 9780538870856

More Books

Students also viewed these Accounting questions

Question

What is prime brokerage?

Answered: 1 week ago