Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Earlene's Eyewear manufactures eyeglass frames. The company uses a standard cost system. Earlene has set the following standards for frame model 19841. Direct Material 4.5

image text in transcribed

Earlene's Eyewear manufactures eyeglass frames. The company uses a standard cost system. Earlene has set the following standards for frame model 19841. Direct Material 4.5 oz. plastic per frame at $3.65 per oz. $16.425 per frame Direct Labor .8 hours at $28 per hour $22.40 per frame In April, Earlene's made 2,500 frames with a material cost of $48,000. Earlene's Eyewear purchased 12,000 oz. of plastic but only used 10,000 oz. of plastic for frame 19841. What is the Material Price Variance? Which of the following could explain the material price variance calculated above? a. Earlene's Eyewear paid less per oz because the material was purchased in bulk to receive a discount. b. Earlene's Eyewear earned less per frame because more materials were purchased than used. c. Earlene's Eyewear earned more per frame because there were no machine breakdowns and fewer labor hours were required than planned. d. Earlene's Eyewear paid more per oz because the company decided to go with a higher quality material. What is the Material Quantity Variance

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

Corporate Responsibility

Authors: Tom Cannon

2nd Edition

0273738739, 9780273738732

More Books

Students also viewed these Accounting questions