The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased 23,000 units Materials Used 16,500 units You find a copy of the budget which shows that materials were budgeted at $0.50/unit. You know that the material price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following: Material price variance $ 230 F Material efficiency variance $ 750 F What was the total standard cost of direct materials purchased during May? Multiple Choice $11,730. $11,270. $8,365. $11,500.
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased 23,000 units Materials Used 16,500 units You find a copy of the budget which shows that materials were budgeted at $0.50/unit. You know that the material price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following: Material price variance $ 230 F Material efficiency variance $ 750 F What was the total standard cost of direct materials purchased during May? Multiple Choice $11,730. $11,270. $8,365. $11,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May:
| Materials Purchased | 23,000 | units | |
| Materials Used | 16,500 | units | |
You find a copy of the budget which shows that materials were budgeted at $0.50/unit. You know that the material price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following:
| Material price variance | $ | 230 | F |
| Material efficiency variance | $ | 750 | F |
What was the total
Multiple Choice
-
$11,730.
-
$11,270.
-
$8,365.
-
$11,500.
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