Question
Taany Company produces chairs. Standard costs for one unit of production are as follows: Direct material...
|
Taany Company produces chairs. Standard costs for one unit of production are as follows: |
||||
|
Direct material |
4 |
pounds |
@ |
$5.00 |
|
Direct labor |
1 |
hour |
@ |
$10.00 |
|
Each unit needs |
0.50 |
hour |
||
|
Variable overhead |
1 |
DLH |
@ |
$6.00 |
|
Production in units |
3,000 |
|||
|
Material purchased in pounds |
11,200 |
@ |
$4.80 |
|
|
Material used in pounds |
12,200 |
|||
|
Direct labor worked in machine hours |
1,450 |
@ |
$10.10 |
|
|
Actual variable overhead incurred |
$9,100.00 |
|||
|
Find |
||||
|
Direct material price variance |
||||
| a. |
$2,240 |
|
| b. |
($2,240) |
|
| c. |
$2,040 |
|
| d. |
($2,040) |
|
| e. |
0 |
Homework Answers
Answer #1
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