Question
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
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Not enough information to judge.
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$0.50.
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None of the answers is correct.
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$0.80.
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$0.70.
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