Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $13.00 per gallon. During July,Scarlett Company purchased and used 7,470 gallons at an actual price of $12.60 to produce 2,050 units. What is the directmaterials price variance?

Answered: Scarlett Company purchased and used…

Scarlett Company purchased and used 7,470 gallons at an actual price of $12.60 to produce 2.050 units. What is the direct materials price variance?

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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Question

Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $13.00 per gallon. During July,
Scarlett Company purchased and used 7,470 gallons at an actual price of $12.60 to produce 2,050 units. What is the direct
materials price variance?

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