What is the direct materials price variance? Note that a negative number indicates an unfavourable variance. Select one: a. $41218 b. S-41218 c. $-31852 X d $21952

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 1BE: Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds...
icon
Related questions
Topic Video
Question

Please help me with correct answer thanku 

The DeShannon Company produces a product that requires 4
kilograms of raw materials at a cost of $10 per kilogram (at
standard). Data for the previous month are as follows:
Units produced
Kilograms of raw materials
purchased
Kilograms of raw materials used
Actual cost per kilogram
Select one:
What is the direct materials price variance? Note that a negative
number indicates an unfavourable variance.
a. $41218
b. $-41218
c. $-31852 X
d. $31852
3689
20609
The correct answer is: $41218
15926
$8
Transcribed Image Text:The DeShannon Company produces a product that requires 4 kilograms of raw materials at a cost of $10 per kilogram (at standard). Data for the previous month are as follows: Units produced Kilograms of raw materials purchased Kilograms of raw materials used Actual cost per kilogram Select one: What is the direct materials price variance? Note that a negative number indicates an unfavourable variance. a. $41218 b. $-41218 c. $-31852 X d. $31852 3689 20609 The correct answer is: $41218 15926 $8
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning