Turn to Stone, Inc. manufactures statues of pop culture icons. All statues are the same size and require the same amount of resources. At the beginning of the year, the following standards were set: standard direct material cost... $80 per statue standard material input ratio... 10 pounds per statue During the year, 4,800 statues were produced, using 48,240 pounds of material that were purchased during the year at a total cost of $385,920. By how much did the actual direct material cost per statue differ from expected direct material cost per statue? O A. The actual cost per unit was $0.05 higher than the expected cost per unit. O B. The actual cost per unit was $0.03 lower than the expected cost per unit. OC. The actual cost per unit was $0.40 higher than the expected cost per unit. O D. The actual cost per unit equalled the expected cost per unit. O E. The actual cost per unit was $0.05 lower than the expected cost per unit.

Turn to Stone, Inc. manufactures statues of pop culture icons. All statues are the same size and require the same amount of resources. At the beginning of the year, the following standards were set: standard direct material cost... $80 per statue standard material input ratio... 10 pounds per statue During the year, 4,800 statues were produced, using 48,240 pounds of material that were purchased during the year at a total cost of $385,920. By how much did the actual direct material cost per statue differ from expected direct material cost per statue? O A. The actual cost per unit was $0.05 higher than the expected cost per unit. O B. The actual cost per unit was $0.03 lower than the expected cost per unit. OC. The actual cost per unit was $0.40 higher than the expected cost per unit. O D. The actual cost per unit equalled the expected cost per unit. O E. The actual cost per unit was $0.05 lower than the expected cost per unit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
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