Question
Fegox Firinghi (FF) produces flip flops. Each flip-flop requires 2 pounds of Flub and 1 pound of Fleeb, which are planned to cost $8 and
Fegox Firinghi (FF) produces flip flops. Each flip-flop requires 2 pounds of Flub and 1 pound of Fleeb, which are planned to cost $8 and $3 per pound, respectively. During the month of May, FF purchased 22,000 pounds of Flub for $179,900 and 13,000 pounds of Fleeb for $42,000. All materials were consumed in producing 10,500 good flip flops.
Which is true?
A) Direct materials price variances total $21,000 unfavorable
B) Direct materials price variances total $6,950 unfavorable
C) The standard price of Flub should be revised
D) The standard price of Flub should not be revised
E) a) and c) only
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