Luma Inc has provided the following data concerning one of the products in its standard cost system Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 4 8 ounces $6 90 per ounce The company has reported the following actual results for the product for September Actual output 2,100 units Raw materials purchased 10,500 ounces Actual price of raw materials $ 7 80 per ounce Actual cost of raw materials purchased $ 81,900 Raw materials used in production 10,090 ounces The raw materials price variance for the month is closest to A) $9,081 U B) $9,450 F C) $9,450 U D) $9,081 F

Question

Luma Inc  has provided the following data concerning one of the products in its standard cost system  Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 4 8 ounces $6 90 per ounce The company has reported the following actual results for the product for September  Actual output 2,100 units Raw materials purchased 10,500 ounces Actual price of raw materials $ 7 80 per ounce Actual cost of raw materials purchased $ 81,900 Raw materials used in production 10,090 ounces The raw materials price variance for the month is closest to  A) $9,081 U B) $9,450 F C) $9,450 U D) $9,081 F

Accepted Answer

The Answer is in the image, click to view ...

Question

Luma Inc. has provided the following data concerning one of the products in its standard cost system. Inputs Standard Quantity or Hours per Unit of

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Management Accounting Evolution Not Revolution

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Inputs	Standard Quantity or Hours per Unit of Output	Standard Price or Rate
Direct materials	4.8 ounces	$6.90 per ounce


Actual output		2,100	units
Raw materials purchased		10,500	ounces
Actual price of raw materials	$	7.80	per ounce
Actual cost of raw materials purchased	$	81,900
Raw materials used in production		10,090	ounces