ToolTime has a standard of 1.5 pounds of materials per unit, at P4 per pound. In producing 2,000 units, ToolTime used 3,100 pounds of materials at a total cost of P12,090. 1. ToolTime’s total material variance is Group of answer choices P300 F. P90 U. P310 U. P400 U 2. ToolTime’s materials price variance is Group of answer choices
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
ToolTime has a standard of 1.5 pounds of materials per unit, at P4 per pound. In producing 2,000 units, ToolTime used 3,100 pounds of materials at a total cost of P12,090.
1. ToolTime’s total material variance is
Group of answer choices
- P300 F.
- P90 U.
- P310 U.
- P400 U
2. ToolTime’s materials price variance is
Group of answer choices
- P90 U.
- P310 F.
- P400 F.
- P700 F
3. ToolTime’s materials quantity variance is
Group of answer choices
- P90 F.
- P310 U.
- P400 U.
- P700 U.
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