Soar, Inc. manufactures a product that has the direct materials standard cost presented below Budgeted and actual information for the current month for the manufacture of the finished prod and the purchase and use of the direct materials is also presented. Standard cost for direct materials: 1.60 lb. @ $2.50 per lb. Budget Actual 32,000 Finished goods (in units) Direct materials usage (in pounds) 30,000 ? 51,000 Direct materials purchases (in pounds) Total cost of direct materials purchases 48,000 50,000 ? $120,000 Soar's direct materials price variance for the current month is A. $500 favorable. B. $500 unfavorable. C. $5,000 favorable. D cO 000
Soar, Inc. manufactures a product that has the direct materials standard cost presented below Budgeted and actual information for the current month for the manufacture of the finished prod and the purchase and use of the direct materials is also presented. Standard cost for direct materials: 1.60 lb. @ $2.50 per lb. Budget Actual 32,000 Finished goods (in units) Direct materials usage (in pounds) 30,000 ? 51,000 Direct materials purchases (in pounds) Total cost of direct materials purchases 48,000 50,000 ? $120,000 Soar's direct materials price variance for the current month is A. $500 favorable. B. $500 unfavorable. C. $5,000 favorable. D cO 000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 7CE: Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced...
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