For FISH Company, actual materials cost was $24,800. Standard price for materials was $5.00 per pound and standard quantity was two pounds per [good] output unit For August, actual pounds purchased AND used were 5100 pounds and 2500 [good output units were produced in August. For each of the following three questions, indicate two things: amount of variance and whether variance was favorable or unfavorable. For blank one, indicate the materials cost variance. For blank two, indicate the materials efficiency (or quantity) variance. For blank three, indicate the total materials variance.
For FISH Company, actual materials cost was $24,800. Standard price for materials was $5.00 per pound and standard quantity was two pounds per [good] output unit For August, actual pounds purchased AND used were 5100 pounds and 2500 [good output units were produced in August. For each of the following three questions, indicate two things: amount of variance and whether variance was favorable or unfavorable. For blank one, indicate the materials cost variance. For blank two, indicate the materials efficiency (or quantity) variance. For blank three, indicate the total materials variance.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2CMA: Marten Company has a cost-benefit policy to investigate any variance that is greater than 1,000 or...
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