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Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information
Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: Window Cleaner Floor Cleaner Product Names (ammonia) (bleach) Direct materials information Standard ounces per unit 16 oz. 28 oz. Standard price (SP) per ounce $1.00 ? Actual quantity (AQ) used per unit 20 OZ. 17 OZ. Actual price (AP) paid for material $1.75 $0.86 Actual quantity purchased (AQP) and used 1900 oz. 2800 oz. Price variance ? $504 U Quantity variance $2800 U ? Flexible budget variance ? $3984 F Number of units produced 400 600 What is the direct materials price variance for ammonia? O $1425 unfavorable O $6000 unfavorable O $6000 favorable 0 $1425 favorable
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