Question
Pericloud Company uses a standard cost system. The following information pertains to July direct materials: Standard price per pound. $20.00 Actual purchase price per pound.
Pericloud Company uses a standard cost system. The following information pertains to July direct materials:
Standard price per pound. | $20.00 |
Actual purchase price per pound. | $18.00 |
Purchased amount | 2,000 pounds |
amount used | 1400 pounds |
Standard Quantity Allowed for Actual Production | 1450 pounds |
actual output | 500 units |
Pericloud Company informs the price variations of its materials at the time of purchase.
What is the material usage variance for the Pericloud Company?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The material usage variance measures the difference between the amount of material that was actually ...
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
5th edition
134128524, 978-0134128528
