Ningning Company makes a white liquid substance that is used to cover errors made on printed documents. Ningning expects to use 4 ounces of a chemical known as Fatal per bottle of correction fluid. Fatal expected to cost P0.40 per ounce. Actual materials cost amounted to P 0.46 per ounce. Ningning expected to make and sell 1,000,000 bottles of correction fluid during the period. Actual production amounted to 900,000 bottles and 4,095,000 ounces. The materials usage variance for Fatal is: O P 245,700 unfavorable O P 245,700 favorable P 198,000 unfavorable P 198,000 favorable

Ningning Company makes a white liquid substance that is used to cover errors made on printed documents. Ningning expects to use 4 ounces of a chemical known as Fatal per bottle of correction fluid. Fatal expected to cost P0.40 per ounce. Actual materials cost amounted to P 0.46 per ounce. Ningning expected to make and sell 1,000,000 bottles of correction fluid during the period. Actual production amounted to 900,000 bottles and 4,095,000 ounces. The materials usage variance for Fatal is: O P 245,700 unfavorable O P 245,700 favorable P 198,000 unfavorable P 198,000 favorable

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Description: The materials usage variance for Fatal is: Ningning Company makes a white liquid substance that is used to covererrors made on printed documents. Ningning expects to use 4 ounces ofa chemical known as Fatal per bottle of correction fluid. Fatal expec

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 25P: Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio...

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