Question
Lakewood Inc. uses a standard cost system. Materials standards are 7 components per widget at $8 per component. During August, Lakewood Inc. purchased 65,600 components
Lakewood Inc. uses a standard cost system. Materials standards are 7 components per widget at $8 per component. During August, Lakewood Inc. purchased 65,600 components for $521,200, using the components to produce 8,900 widgets.
a. Calculate the direct materials price variance.
b. Calculate the direct materials quantity variance.
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Answer a Materials price variance 3600 F b Materials Quan...
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
