Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Griffen Company makes pipe using metal. The company uses a standard costing system. Variable overhead is allocated on the basis of direct material usage (pounds).
Griffen Company makes pipe using metal. The company uses a standard costing system. Variable overhead is allocated on the basis of direct material usage (pounds). Overhead is allocated to units based on expected production of 12,100 units. Griffen maintains a materials inventory, so the amount of material used is not necessarily the same as the amount of material purchased in any one month. The standard cost sheet for a unit of pipe follows. August financial results show that the average purchase price of metal was $6.30 per pound. The purchase price variance $34,689 unfavorable. The variable overhead efficiency variance was 8,100 unfavorable. Good output produced totaled 15,100 units. Required: a. How many pounds of metal were purchased in August? (Do not round intermediate calculations.) . What was the direct material efficiency variance in August? (Do not round intermediate calculations. Indicate the effect of each /ariance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) E. How many pounds of metal were used in August? (Do not round intermediate calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started