Question
Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system. Inputs Standard Quantity or Hours per Unit of
Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system.
| Inputs | Standard Quantity or Hours per Unit of Output | Standard Price or Rate |
| Direct materials | 8.0 liters | $5.00 per liter |
The company has reported the following actual results for the product for April:
| Actual output | 7,400 | units | |
| Raw materials purchased | 65,400 | liters | |
| Actual price of raw materials | $ | 5.70 | per liter |
| Raw materials used in production | 59,210 | liters | |
The direct materials purchases variance is computed when the materials are purchased.
The raw materials price variance for the month is closest to:
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Leading The Digital Workforce Internal Audit And IT Audit
Authors: Jeffrey W. Brown
1st Edition
1032323736, 978-1032323732
