A company provided the following direct materials cost information. Compute the direct materials quantity variance. Standard costs assigned: Direct materials standard cost (405,000 units @ $4.00/unit)$1,620,000 Actual costs: Direct materials costs incurred (403,120 units @ $4.30/unit)$1,733,416 Multiple Choice$113,416 Favorable.$8,084 Unfavorable$8,084 Favorable.$7,520 Favorable.$7,520 Unfavorable.

Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Answered: A company provided the following direct…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 7E: H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup...

See similar textbooks

Related questions

Question

100%

A company provided the following direct materials cost information. Compute the direct materials quantity variance.


Standard costs assigned:
Direct materials standard cost (405,000 units @ $4.00/unit)	$	1,620,000
Actual costs:
Direct materials costs incurred (403,120 units @ $4.30/unit)	$	1,733,416

Multiple Choice

$113,416 Favorable.
$8,084 Unfavorable
$8,084 Favorable.
$7,520 Favorable.
$7,520 Unfavorable.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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