Question
Gumchara Corporation reported the following information with respect to the materials required to manufacture amalgam florostats during the current month: Standard price per gram of
Gumchara Corporation reported the following information with respect to the materials required to manufacture amalgam florostats during the current month:
| Standard price per gram of material | $4 |
| Standard quantity of materials per amalgam florostat | 5 grams |
| Actual materials purchased and used in production | 6,000 grams |
| Actual amalgam florostats produced during the month | 1,000 units |
| Actual cost of materials purchased | $18,000 |
| Normal monthly output | 900 units |
a. Determine Gumchara's materials price variance
b. Determine Gumchara's materials quantity variance
c. Will Gumchara's overhead volume variance be favorable or unfavorable? Why?
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Essentials of Accounting for Governmental and Not-for-Profit Organizations
Authors: Paul A. Copley
10th Edition
007352705X, 978-0073527055
