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Sates Corporation reported the following information concerning its direct materials. Direct materials purchased (actual) standard cost of materials purchased standard price times actual amount of materials used Actual production standard direct materials costs per unit produced $679, 000 $700, 000 $450, 000 23, 200 units $4 18.8 Required: Compute the direct materials cost variances. (Indlcate the effect of each varlance by selecting "F unfavorable. If there is o effect, do not select elther optlon.) Direct Materials Price variance Efficiency variance Total direct materials cost variance

Sates Corporation reported the following information concerning its direct materials. Direct materials purchased (actual) standard cost of materials purchased standard price times actual amount of materials used Actual production standard direct materials costs per unit produced $679, 000 $700, 000 $450, 000 23, 200 units $4 18.8 Required: Compute the direct materials cost variances. (Indlcate the effect of each varlance by selecting "F unfavorable. If there is o effect, do not select elther optlon.) Direct Materials Price variance Efficiency variance Total direct materials cost variance

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter13: Budgeting And Standard Costs
Section: Chapter Questions
Problem 13.4P: Direct materials and direct labor variance analysis Faucet Industries Inc. manufactures faucets in a...
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%24 Exercise 17-19 (Algo) Variable Cost Variances: Materials Purchased and Materials Used Are Not Equal (LO 17-2) Gates Corporation reported the following information concerning its direct materials. Direct materials purchased (actual) standard cost of materials purchased standard price times actual amount of materials used Actual production standard direct materials costs per unit produced $679, 000 $700, 000 $450, 000 23, 200 units 18.8 Required: Compute the direct materials cost variances. (Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there Is no effect, do not select elther optlon.) Direct Materials Price variance Efficiency variance Total direct materials cost variance
Transcribed Image Text:%24 Exercise 17-19 (Algo) Variable Cost Variances: Materials Purchased and Materials Used Are Not Equal (LO 17-2) Gates Corporation reported the following information concerning its direct materials. Direct materials purchased (actual) standard cost of materials purchased standard price times actual amount of materials used Actual production standard direct materials costs per unit produced $679, 000 $700, 000 $450, 000 23, 200 units 18.8 Required: Compute the direct materials cost variances. (Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there Is no effect, do not select elther optlon.) Direct Materials Price variance Efficiency variance Total direct materials cost variance
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