Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost standards for one unit of product no. C 1895: Direct material 3 pounds at $2.70 per pound $ 8.10 Direct labor 7 hours at

Cost standards for one unit of product no. C 1895: Direct material 3 pounds at $2.70 per pound $ 8.10 Direct labor 7 hours at $7.70 per hour 53.90 Actual results: Units produced 5,600 units Direct material purchased 26,200 pounds at $2.90 $ 75,980 Direct material used 16,500 pounds at $2.90 47,850 Direct labor 40,300 hours at $7.50 302,250 Assume that the company computes variances at the earliest point in time. The direct-material price variance is:

Multiple Choice None of the answers is correct. $5,240U. $5,240F. $3,300U. $3,300F.

Enfield Industries purchased and consumed 56,000 gallons of direct material that was used in the production of 15,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of four gallons. If a review of Enfield's accounting records at the end of the period disclosed a material price variance of $5,600U and a material quantity variance of $2,800F, what is the actual price paid for a gallon of direct material? (Do not round intermediate calculations.)

Multiple Choice

  • Not enough information to judge.

  • $0.50.

  • None of the answers is correct.

  • $0.80.

  • $0.70.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Part 3 Business Knowledge For Internal Auditing 2022

Authors: MUHAMMAD ZAIN

1st Edition

B09PM77HSC, 979-8794979688

More Books

Students also viewed these Accounting questions

Question

Compute Chavez Company's current ratio using the above information

Answered: 1 week ago