Question
Aspire Liquids Inc. provides the following information regarding its standard cost system. Standard per Unit Standard Price Standard Price per Unit Direct Materials 3 gallons
Aspire Liquids Inc. provides the following information regarding its standard cost system.
Standard per Unit | Standard Price | Standard Price per Unit | |
Direct Materials | 3 gallons | $5.00 per gallon | $15.00 |
During the period, the company produced and sold 23,000 units and actually used 75,000 gallons of Direct Materials at an actual cost of $4.75 per gallon.
Which of the following is the correct calculation and interpretation of the Price Variance for Aspire Liquids Inc.?
- $75,000 U
- $18,750 F
- $356,250 F
- $30,000 U
- $4.75 F
- $375,000 F
Which of the following is the correct calculation and interpretation of the Quantity Variance for Aspire Liquids Inc.?
- $30,000 F
- $345,000 U
- $75,000 U
- $30,000 U
- $5,675 F
- None of the listed answers are correct.
Which of the following is the correct calculation and interpretation of the Flexible-Budget Variance for Aspire Liquids Inc.?
- $18,750 F
- $69,000 U
- $11,250 U
- $14,750 F
- $375,000 U
- None of the listed answers are correct.
Step by Step Solution
3.50 Rating (173 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the variances we need to compare the actual quantities and prices with the standard qua...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