Arm and hammer have created a new liquid solution which is proven to clean much better than bleach. The solution gained great popularity immediately. The cleaning solution was named squeaky The direct materials and direct labor standards for one unit of squeaky are as follow

During the most recent month in which 8000 units of squeaky were budgeted to be produced the following activity was recorded:

19,000 pounds of material were purchased at a cost of $2.95 per pound

18,200 pounds of material were used to produce 7,900 units of Squeaky

Which of the following is the materials quantity variance?

$950 unfavorable

$2,407 unfavorable

$580 favorable

$87 unfavorable

Which of the following is true about the appropriate journal entry associated with the purchase of material on account?

Raw materials is debited for $56,050

Work in process is debited for $52,693

Direct materials price variance is debited for $950

Accounts payable is credited for $52,780.

Standard quantity of Standard price or rate Standard cost hours Direct materials 2.3 pounds Direct labor .8 hours $2.90 per pound $25 per hour $6.67 $20