Question
Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles
Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established: Direct materials: 4 lbs. @ $1.50 Direct labor: 1.25 hrs. @ $16.00 During December, 58,000 pounds of materials were purchased and used in production. There were 15,000 cases produced, with the following actual prime costs: Direct materials: $89,000 Direct labor: $294,500 (at $15.50 per hour) What are the (1) direct materials price variance and (2) direct materials quantity variance? O (1) $3,000 U; (2) $2,000 F (1) $2,000 F; (2) $3,000 U (1) $2,000 U; (2) $3,000 F O (1) $3,000 F; (2) $2,000 U
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