The standard costs and actual costs for direct materials for the manufacture of 2,300 actual units of product are as follows:**Standard Costs** - Direct materials: 1,040 kilograms at $8.51**Actual Costs** - Direct materials: 2,300 kilograms at $8.35The direct materials price variance is:- a. $166 unfavorable- b. $368 favorable- c. $166 favorable- d. $368 unfavorable

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Description: The standard costs and actual costs for direct materials for the manufacture of 2,300 actual units of product are as follows:**Standard Costs** - Direct materials: 1,040 kilograms at $8.51**Actual Costs** - Direct materials: 2,300 kilograms at $8.

The variance arises when there is difference between actual results and budgeted results. Results are favorable when actual cost is less than budgeted costs. Results are unfavorable when actual cost is more than budgeted costs.Correct option= Option b. $368 favorable Working: Materials Price Variance = (Actual quantity purchased × Actual price) - (Actual quantity purchased × Standard price) =(2300 * $8.35) - ( 2300* $8.51) = $19205 - $19573 = $368 Favorable

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The standard costs and actual costs for direct materials for the manufacture of 2,300 actual units of product are as follows: Standard Costs Direct materials Direct materials Actual Costs The direct materials price variance is Oa. $166 unfavorable Ob. $368 favorable Oc. $166 favorable Od. $368 unfavorable 1,040 kilograms at $8.51 2,300 kilograms at $8.35

The standard costs and actual costs for direct materials for the manufacture of 2,300 actual units of product are as follows: Standard Costs Direct materials Direct materials Actual Costs The direct materials price variance is Oa. $166 unfavorable Ob. $368 favorable Oc. $166 favorable Od. $368 unfavorable 1,040 kilograms at $8.51 2,300 kilograms at $8.35

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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a, b, c has been answered here: https://www.bartleby.com/questions-and-answers/standard-costing-variance-question-1-zincet-co-a-manufacturing-firm-operates-a-standard-costing-syst/d363f090-547b-43f6-b739-680f61e5ae18
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