Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Morro Bay Surfboards manufactures fib erglass surfboards and has set the following direct material standards for each surfboard produced: standard price direct materials $3.25 per
Morro Bay Surfboards manufactures fib erglass surfboards and has set the following direct material standards for each surfboard produced: standard price direct materials $3.25 per pound standard quantity 9 pounds per unit At September 1, Morro Bay Surfboards had 3,600 pounds of direct materials in its inventory. Du ring September, Morro Bay Surfboards paid $740,860 to purch ase direct materials. At September 30, Morro Bay Surfboard s' direct materials inventory consisted of 8,700 pounds o f direct materials. During September, 25,100 surfboards w ere produced. For the month of September, Morro Bay Sur fboards reported a $42,575 favorable direct material qua ntity variance. Calculate Morro Bay Surfboards' direc t material price variance for September. If the variance is unfavorable, simpl y enter your answer as a number (i.e., 5000). If the vari ance is favorable, place a minus sign in front of your a nswer (i.e., -5000).
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