Question
April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 50,000 feet of raw material for
April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 50,000 feet of raw material for $200,000, and it takes 5 feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $6,000.
A.What is April Industries' standard price for one unit of material?
Standard cost per unit$fill in the blank 1
B.What was the total number of units of material used to produce the August output?
Actual quantity feetfill in the blank 2
Units
C.What was the direct materials price variance for August?
Direct materials price variance$fill in the blank 3
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