Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Arctic Enterprises, Inc. freezes water into ice. The standard and actual costs for direct materials for the manufacture of 2,000 tons of ice are: Standard
Arctic Enterprises, Inc. freezes water into ice. The standard and actual costs for direct materials for the manufacture of 2,000 tons of ice are:
Standard costs | Actual costs | |
Direct materials | 9,900 gallons at $1.00 | 10,000 gallons at $.98 |
Which is true of the direct materials price and direct materials quantity variances?
Group of answer choices
The direct materials price variance is unfavorable; the direct materials quantity variance is favorable.
The direct materials price variance is favorable; the direct materials quantity variance is unfavorable.
Both are unfavorable.
Both are favorable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started