Lemon Company manufactures a single product. The company manufactured 5,000 units in March, using 6,150 pounds of material and 2,420 labor hours. During the same month, they purchased 6,200 pounds of material for $151,590. The actual labor cost for March was $39,930. There were no beginning or ending work-in-process inventories. The company has the following unit standard costs for direct materials and labor. Budgeted quantity Per unit 1.20 pounds 0.50 hours Budgeted price $25 per pound $15 per hour Direct materials Direct labor 13. The direct material price variance for March is: a. $2,160 favorable b. $3,383 favorable c. $2,160 unfavorable d. $3,383 unfavorable e. $3,410 unfavorable f. $3,410 favorable g. $3,300 favorable h. None of these answers are correct.

Lemon Company manufactures a single product. The company manufactured 5,000 units in March, using 6,150 pounds of material and 2,420 labor hours. During the same month, they purchased 6,200 pounds of material for $151,590. The actual labor cost for March was $39,930. There were no beginning or ending work-in-process inventories. The company has the following unit standard costs for direct materials and labor. Budgeted quantity Per unit 1.20 pounds 0.50 hours Budgeted price $25 per pound $15 per hour Direct materials Direct labor 13. The direct material price variance for March is: a. $2,160 favorable b. $3,383 favorable c. $2,160 unfavorable d. $3,383 unfavorable e. $3,410 unfavorable f. $3,410 favorable g. $3,300 favorable h. None of these answers are correct.

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Description: Use the following information to answer the next 3 questions:Lemon Company manufactures a single product. The company manufactured 5,000units in March, using 6,150 pounds of material and 2,420 labor hours. During the samemonth, they purchased 6,200

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 6E: Foamy Inc. manufactures shaving cream and uses the weighted average cost method. In November,...

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