The Four Tops Company uses standard costing. During 2019, 12,000 pounds of Direct Material were purchased at an average cost of $5.20 per pound. Also during 2019, 10,500 pounds of Direct Material were used to produce 5,000 units. For 2019, the standards for Direct Material were 2 pounds per unit at $5.50 per pound. Compute the Direct Materials Price Variance for 2019.

The Four Tops Company uses standard costing. During 2019, 12,000 pounds of Direct Material were purchased at an average cost of $5.20 per pound. Also during 2019, 10,500 pounds of Direct Material were used to produce 5,000 units. For 2019, the standards for Direct Material were 2 pounds per unit at $5.50 per pound. Compute the Direct Materials Price Variance for 2019.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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