ABC Incorporation provides the following information for November 2018 Budgeted Production = 200 units Standard consumption of raw materials = 2 kg per unit Standard cost of raw material = $6 per kg Actual Production = 250 units Material A was purchased at $8 per kg and the consumption was 1.8 kg per unit of production. Calculate the material price variance. a. $900 Favorable b. $900 Unfavorable c. $600 Favorable d. $600 Unfavorable

ABC Incorporation provides the following information for November 2018 Budgeted Production = 200 units Standard consumption of raw materials = 2 kg per unit Standard cost of raw material = $6 per kg Actual Production = 250 units Material A was purchased at $8 per kg and the consumption was 1.8 kg per unit of production. Calculate the material price variance. a. $900 Favorable b. $900 Unfavorable c. $600 Favorable d. $600 Unfavorable

Name: ABC Incorporation provides the following information for November 201
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Description: ABC Incorporation provides the following information for November 2018Budgeted Production = 200 unitsStandard consumption of raw materials = 2 kg per unitStandard cost of raw material = $6 per kgActual Production = 250 unitsMaterial A was purchased

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1BE: Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds...

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