Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hosta Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity
Hosta Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity of clay used for each planter is 47 pounds. The company uses a standard cost of $2.35 per pound of clay. Hosta produced 1,500 planters in May. In that month, 72,000 pounds of clay were purchased and used at the total cost of $162,000 Read the requirements. Requirement 1. Calculate the direct material price variance. Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) Hosta Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity of clay used for each planter is 47 pounds. The company uses a standard cost of $2.35 per pound of clay. Hosta produced 1,500 planters in May. In that month, 72,000 pounds of clay were purchased and used at the total cost of $162,000 Read the requirements. Requirement 1. Calculate the direct material price variance. Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials)
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