C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard 60 inches Price Standard I$3.25 per inch Direct Materials Direct Labor 3 hours $20 per hour During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.50 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 855 hours at an average rate of $22 per hour. Compute the materials price variance for September. Multiple Choice $4,750U $4,375U $4,375F $4,750F

C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard 60 inches Price Standard I$3.25 per inch Direct Materials Direct Labor 3 hours $20 per hour During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.50 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 855 hours at an average rate of $22 per hour. Compute the materials price variance for September. Multiple Choice $4,750U $4,375U $4,375F $4,750F

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Description: C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below:Quantity StandardPrice Standard$3.25 per inchDirect Materials60 inchesDirect La

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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