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please answer!! In completing the order for 1,000 gallons of Auto Tonic, the company used 4,200 pounds of direct materials. Auto's standards require it to
please answer!!
In completing the order for 1,000 gallons of Auto Tonic, the company used 4,200 pounds of direct materials. Auto's standards require it to use 4 pounds of materials per gallon produced, so it should have only used 4,000 (4 . 1,000) pounds of direct materials to produce 1,000 gallons. The direct materials were purchased at a price of $3.10 per unit, but the standard cost of each pound of direct materials is $3 instead of the $3.10 actually paid. The direct materials efficiency variance is Step by Step Solution
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