Medicox a producer of medical emergency kits has purchased (at a cost of P10,200) and used 2,400 pounds of materials during May. standard cost of materials per unit produced is based on 2 pounds per unit at a cost P5 per pound. Production in May was 1,050 units. (a)Compute the total, price, and quantity variances for materials (b)Assume it also had an unfavorable labor quantity variance. What is a possible scenario that would provide one cause for the variances computed in (a) and unfavorable labor quantity variance?

Medicox a producer of medical emergency kits has purchased (at a cost of P10,200) and used 2,400 pounds of materials during May. standard cost of materials per unit produced is based on 2 pounds per unit at a cost P5 per pound. Production in May was 1,050 units. (a)Compute the total, price, and quantity variances for materials (b)Assume it also had an unfavorable labor quantity variance. What is a possible scenario that would provide one cause for the variances computed in (a) and unfavorable labor quantity variance?

Name: Medicox a producer of medical emergency kits has purchased (at a cost
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Description: Medicox a producer of medical emergency kits has purchased (at a cost of P10,200) and used 2,400 pounds ofmaterials during May. standard cost of materials per unit produced is based on 2 pounds per unit at a cost P5 perpound. Production in May was 1

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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