Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Questions 4 to 6 are based on the following information. Optimum Co. uses a standard costing system in its Ruston Plant in which all inventory
Questions 4 to 6 are based on the following information. Optimum Co. uses a standard costing system in its Ruston Plant in which all inventory is carried at standard. The following standard costs data is provided for one of its products Direct Materials 5 pounds @ $2.25 per pound Direct Labor 3 hours @ $9.00 per hour Optimum planned to produce 32,000 units each month. For April, the operating data show that 31,500 units of product were produced. During April, 160,000 pounds of materials were purchased at a price of $2.20 per pound. 159,000 pounds of material and 94,500 direct labor hours were used in production. 4. What is the amount of the direct material price variance? $2,250 unfavorable b. $8,000 favorable $5,750 favorable d. $5,750 unfavorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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