Question

The purchasing agent of the Aldrich Company ordered materials of lower quality in an effort to...

The purchasing agent of the Aldrich Company ordered materials of lower quality in an effort to economize on price. What variance will most likely result?

A.

Favorable materials quantity variance

B.

Favorable total materials variance

C.

Unfavorable materials price variance

D.

Unfavorable materials quantity variance

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Raw materials purchased had a lower price than the standard price. The materials were found to...
Raw materials purchased had a lower price than the standard price. The materials were found to be of inferior quality. Accordingly, each unit of product consumed more materials than the amount that should have been used. Direct labor workers ended up taking longer to complete products because the inferior materials got jammed in the machinery, and slowed down machinery. Which of the following is likely to be the result of buying these inferior materials? Group of answer choices An unfavorable...
Which of the following is the most likely explanation for an unfavorable direct materials quantity variance?...
Which of the following is the most likely explanation for an unfavorable direct materials quantity variance? a. The new purchasing agent was not as effective in negotiating low prices. b. They used higher quality direct materials, which reduced waste (scrap). c. The government levied new tariffs on the materials purchased. d. Lack of training meant that employees made more mistakes than expected.
Direct Materials Variances Bellingham Company produces a product that requires 8 standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires 8 standard pounds per unit. The standard price is $6.5 per pound. If 3,000 units required 24,500 pounds, which were purchased at $6.37 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ Favorable...
Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased...
Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased and used 72,000 gallons Total quantity of DM budgeted to be used in May production 68,800 gallons Actual cost of DM purchased and used in May $152,800 Unfavorable DM quantity variance $7,200 What is the DM price variance in May? A. $2,000 Unfavorable B. $2,000 Favorable C. $9,200 Unfavorable D. $9,200 Favorable E. $7,200 Unfavorable
Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased...
Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased and used 72,000 gallons Total quantity of DM budgeted to be used in May production 68,800 gallons Actual cost of DM purchased and used in May $152,800 Unfavorable DM quantity variance $7,200 What is the DM price variance in May? A. $2,000 Unfavorable B. $2,000 Favorable C. $9,200 Unfavorable D. $9,200 Favorable E. $7,200 Unfavorable
The standard cost of Product B manufactured by Pharrell Company includes 3 units of direct materials...
The standard cost of Product B manufactured by Pharrell Company includes 3 units of direct materials at $5.00 per unit. During June, 29,000 units of direct materials are purchased at a cost of $4.70 per unit, and 29,000 units of direct materials are used to produce 9,400 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $ Neither favorable nor unfavorableFavorableUnfavorable Materials price variance $ Neither favorable nor unfavorableFavorableUnfavorable Materials...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,100 automobile tires: Actual: 60,300 lbs. at $1.75 $105,525 Standard: 58,500 lbs. at $1.8 $105,300 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance $ Quantity variance $ Total direct materials cost variance $...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 1,800 automobile tires: Actual: 52,000 lbs. at $1.9 $98,800 Standard: 50,400 lbs. at $1.95 $98,280 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance $ Quantity variance $ Total direct materials cost variance $...
Exercise 23-5 The standard cost of Product B manufactured by Pharrell Company includes 2.2 units of...
Exercise 23-5 The standard cost of Product B manufactured by Pharrell Company includes 2.2 units of direct materials at $6.1 per unit. During June, 27,200 units of direct materials are purchased at a cost of $5.90 per unit, and 27,200 units of direct materials are used to produce 12,200 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $ Favorable Unfavorable Neither favorable nor unfavorable Materials price variance $ Unfavorable...
Direct Materials Variances Bellingham Company produces a product that requires 12 standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires 12 standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 72,900 pounds, which were purchased at $10.29 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $    Unfavorable b. Direct...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT