Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gala Enterprises reports the following information regarding the production on one of its products for the month. Direct materials standard : (3 lbs. @ $4/lb.)$12

Gala Enterprises reports the following information regarding the production on one of its products for the month.

Direct materials standard : (3 lbs. @ $4/lb.)$12 per finished unit

Actual direct materials used 250,000 lbs.

Actual finished units produced 90,000 units

Actual cost of direct materials used$980,000

Requirement 1:

Compute the direct materials cost variance and identify as either F for favorable or U for unfavorable.

Cost variance =, F/U

Requirement 2:

Compute the direct materials price variance and identify as either F for favorable or U for unfavorable.

Price variance =, F/U

Requirement 3:

Compute the direct materials quantity variance and identify as either F for favorable or U for unfavorable.

Quantity variance =, F/U

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

Psychology Applied To Teaching

Authors: Jack Snowman, Rick McCown

14th Edition

1285734556, 9781285734552

More Books

Students also viewed these Accounting questions

Question

what is the law of supply and demand?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago

Question

3. To retrieve information from memory.

Answered: 1 week ago

Question

2. Value-oriented information and

Answered: 1 week ago