For the year 2018, a company provides the following information: Description Amount Budgeted output Budgeted raw materials to be used (in pounds) Budgeted raw materials price per pound |Budgeted labor rate per hour Budgeted labor hours 4,000 30,000 $0.20 $15.00 2,000 Actual output Actual raw materials used (in pounds) |Actual raw materials price per pound Actual labor rate per hour |Actual labor hours 4,200 32,000 $0.18 $14.50 2,050 Compute the direct materials price variance. a. The direct materials price variance is $600(Favorable). b. The direct materials price variance is $640(Unfavorable). c. The direct materials price variance is $640(Favorable). d. The direct materials price variance is $600(Unfavorable).

For the year 2018, a company provides the following information: Description Amount Budgeted output Budgeted raw materials to be used (in pounds) Budgeted raw materials price per pound |Budgeted labor rate per hour Budgeted labor hours 4,000 30,000 $0.20 $15.00 2,000 Actual output Actual raw materials used (in pounds) |Actual raw materials price per pound Actual labor rate per hour |Actual labor hours 4,200 32,000 $0.18 $14.50 2,050 Compute the direct materials price variance. a. The direct materials price variance is $600(Favorable). b. The direct materials price variance is $640(Unfavorable). c. The direct materials price variance is $640(Favorable). d. The direct materials price variance is $600(Unfavorable).

Name: For the year 2018, a company provides the following information:Descr
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Description: For the year 2018, a company provides the following information:DescriptionAmountBudgeted outputBudgeted raw materials to be used (inpounds)Budgeted raw materials price per poundBudgeted labor rate per hourBudgeted labor hours4,00030,000$0.20$15.002

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 9P: USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted,...

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