Use the following information to answer questions 15 and 16.A company has the following information in its standard cost card:£= 7.00Material 2.5kg at the price of £3/kgDuring the month the company recorded the following:Units producedMaterial usedMaterial cost2,500 units7,850kg£23,180%3D15. Calculate the material price variance.16. Calculate the material usage variance.

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Description: Use the following information to answer questions 15 and 16.A company has the following information in its standard cost card:£= 7.00Material 2.5kg at the price of £3/kgDuring the month the company recorded the following:Units producedMaterial usedM

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Use the following information to answer questions 15 and 16. A company has the following information in its standard cost card: Material 2.5kg at the price of £3/kg = 7.00 During the month the company recorded the following: Units produced Material used Material cost 2,500 units 7,850kg £23,180 15. Calculate the material price variance. 16. Calculate the material usage variance. II I|||

Use the following information to answer questions 15 and 16. A company has the following information in its standard cost card: Material 2.5kg at the price of £3/kg = 7.00 During the month the company recorded the following: Units produced Material used Material cost 2,500 units 7,850kg £23,180 15. Calculate the material price variance. 16. Calculate the material usage variance. II I|||

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...

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Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. A. Compute the material and labor variances. B. Comment on the results and possible causes of the variances.
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