The standard costs and actual costs for direct materials for the manufacture of 2,640 actual units of product are as follows:**Standard Costs**- Direct materials: 2,640 kilograms at $8.90**Actual Costs**- Direct materials: 2,700 kilograms at $8.10The direct materials quantity variance is:- a. $534 unfavorable- b. $427 unfavorable- c. $427 favorable- d. $534 favorable

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Description: The standard costs and actual costs for direct materials for the manufacture of 2,640 actual units of product are as follows:**Standard Costs**- Direct materials: 2,640 kilograms at $8.90**Actual Costs**- Direct materials: 2,700 kilograms at $8.10Th

Cost Variances is the difference between the actual cost incurred and the standard cost. Cost Variance is the process to evaluate the performance of the project. Cost Variance compares the actual cost with the budget which that was set before the project started.Direct Material quantity variance = (Standard quantity - actual quantity)*standard rate = (2,640 kg - 2,700 kg) x $8.90 = $534 unfavorable Option a. is the correct answer.

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The standard costs and actual costs for direct materials for the manufacture of 2,640 actual units of product are as follows: Standard Costs Direct materials Direct materials 2,640 kilograms at $8.90 Actual Costs 2,700 kilograms at $8.10 The direct materials quantity variance is Oa. $534 unfavorable Ob. $427 unfavorable Oc. $427 favorable Od. $534 favorable

The standard costs and actual costs for direct materials for the manufacture of 2,640 actual units of product are as follows: Standard Costs Direct materials Direct materials 2,640 kilograms at $8.90 Actual Costs 2,700 kilograms at $8.10 The direct materials quantity variance is Oa. $534 unfavorable Ob. $427 unfavorable Oc. $427 favorable Od. $534 favorable

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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