Question
Cyric Company had a plan to produce 400 units of a given product. The companys material standard for one unit of the product is 10
Cyric Company had a plan to produce 400 units of a given product. The companys material standard for one unit of the product is 10 lbs, and the standard price for one lbs of the material is $50. The company actually made 300 units using 2,800 lbs of the material. The actual material price paid was $52 per lbs. What is the amount of the material price variance?
| A. | $7,200, Favorable | |
| B. | $8,000, Unfavorable | |
| C. | $4,800, Favorable | |
| D. | $5,600, Unfavorable | |
| E. | $6,000, Unfavorable |
Use the same information given in the above question. Further assume that the actual price of the material had been the same as the standard price. Still the actual cost would have been __________ than the standard cost.
| A. | $9,600 greater | |
| B. | $10,400 smaller | |
| C. | $8,400 greater | |
| D. | $10,000 smaller | |
| E. | $60,000 smaller |
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Financial Accounting
Authors: David Spiceland
6th Edition
1265889716, 978-1265889715
