The standard price and quantity of fuel are $1.60 per gallon purchased and 1.25 gallons consumed per gallon sold, respectively. The actual price of fuel was $2 per gallon and the actual quantity of fuel consumed was 32,500 gallons. Actual fuel purchases were 35,000 gallons. Compute the purchase price, price and quantity variances for fuel. Label variances as favorable or unfavorable.

The standard price and quantity of fuel are $1.60 per gallon purchased and 1.25 gallons consumed per gallon sold, respectively. The actual price of fuel was $2 per gallon and the actual quantity of fuel consumed was 32,500 gallons. Actual fuel purchases were 35,000 gallons. Compute the purchase price, price and quantity variances for fuel. Label variances as favorable or unfavorable.

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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