Soar, Inc. manufactures a product that has the direct materials standard cost presented below Budgeted and actual information for the current month for the manufacture of the finished prod and the purchase and use of the direct materials is also presented. Standard cost for direct materials: 1.60 lb. @ $2.50 per lb. Budget Actual 32,000 Finished goods (in units) Direct materials usage (in pounds) 30,000 ? 51,000 Direct materials purchases (in pounds) Total cost of direct materials purchases 48,000 50,000 ? $120,000 Soar's direct materials price variance for the current month is A. $500 favorable. B. $500 unfavorable. C. $5,000 favorable. D cO 000

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A: Definition:   Material budget: Material purchase budget determines the measure of direct materials…

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A: Materials Price Variance = (Standard price - Actual price) x Actual quantity = [2.50 -…

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A:

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A:

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A: 1.

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.