Question
Question 33 Reference: 10-03 The Albright Company uses standard costing and has established the following standards for its single product: Direct Materials 2 litres at
Question 33
Reference: 10-03
The Albright Company uses standard costing and has established the following standards for its single product:
Direct Materials 2 litres at $3 per litre
Direct Labour 0.5 hours at $8 per hour
Variable Manufacturing Overhead 0.5 hours at $2 per hour
During November, the company made 4,000 units and incurred the following costs:
Direct Materials Purchased 8,100 litres at $3.10 per litre
Direct Materials Used 7,600 litres
Direct Labour Used 2,200 hours at $8.25 per hour
Actual Variable Manufacturing Overhead $4,175
The company applies variable manufacturing overhead to products on the basis of direct labour hours.
What was the materials price variance for November?
Question 33 options:
A)
$810 unfavourable.
B)
$2,310 favourable.
C)
$2,310 unfavourable.
D)
$810 favourable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started