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Precilla Company uses a standard costing system that allows 1.70 pounds of direct materials for one finished unit. During July, the company purchased 35,000 pounds
Precilla Company uses a standard costing system that allows 1.70 pounds of direct materials for one finished unit. During July, the company purchased 35,000 pounds of direct materials for $181,000 and manufactured 10,000 finished units. The standard direct materials cost allowed for the units manufactured is $107,000. The performance report shows that Pricilla has an unfavorable direct materials usage variance of $4,300. Also, the company records any price variance for materials at time of urchase. The number of pounds of direct materials used to produce July's output was: 17,500 19,500 17,000 17,683 18,183
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