Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity Standard price Standard cost 6.5 liters per unit $ 1.00 per liter $ 6.50 per unit The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for April is:

Cornerstones of Cost Management (Cornerstones Series)
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Chapter9: Standard Costing: A Functional-based Control Approach
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Problem 20E: Jameson Company produces paper towels. The company has established the following direct materials...
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Turrubiates Corporation makes a product that uses a material with the following standards:
Standard quantity
Standard price
Standard cost
6.5 liters per unit
$ 1.00 per liter
$ 6.50 per unit
The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to
produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter.
The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for April is:
Transcribed Image Text:Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity Standard price Standard cost 6.5 liters per unit $ 1.00 per liter $ 6.50 per unit The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for April is:
O
$1,560 F
$1,860 U
$1,560 U
$1,860 F
Transcribed Image Text:O $1,560 F $1,860 U $1,560 U $1,860 F
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