Question
Total Materials Variance Krumple Inc. produces aluminum cans. Production of 11-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can.
Total Materials Variance Krumple Inc. produces aluminum cans. Production of 11-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,300,000 ounces of aluminum. The actual cost of aluminum was $0.11 per ounce and the standard price was $0.01 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the total variance for aluminum for the month of April. Enter amount as a positive number and select Favorable or Unfavorable.
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