Question
Tercer reports the following for one of its products. Direct materials standard (4 lbs. @ $3 per lb.) $ 12 per finished unit Actual direct
Tercer reports the following for one of its products.
| Direct materials standard (4 lbs. @ $3 per lb.) | $ | 12 | per finished unit | |
| Actual direct materials used (AQ) | 330,000 | lbs. | ||
| Actual finished units produced | 64,000 | units | ||
| Actual cost of direct materials used | $ | 924,000 | ||
AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price
Compute the direct materials price and quantity variances and classify each as favorable, unfavorable or no variance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
Trust Me Im Almost An Auditor
Authors: Lily Hazelwood
1st Edition
1791960405, 978-1791960407
