13) Perea, Inc recently completed 56.000 units of a product that was expectefour pounds of direct material per finished unit. The standard price of the directmaterial was 58.50 per pound If the fins purchased and consumed 228,000 pounds inmanufacturing (cost S1,881,000), the direct-material quantity variance would befigured asA) S34.000U.B) S57,000FC) S34,000FD) SS7,000UE) None of the answers is correct

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Description: 13) Perea, Inc recently completed 56.000 units of a product that was expectefour pounds of direct material per finished unit. The standard price of the directmaterial was 58.50 per pound If the fins purchased and consumed 228,000 pounds inmanufactur

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13) Perez, Inc recently completed 56.000 units of a product that four pounds of dinect material per finishod unit The standard price of the direct uterial was S 50 per pound If the fim purchaned and consumed 225,000 pounds in manufacturing (cost-S1.881.000) the ditect-material quantity variance would be figured as A) S34000U B) SS7 D) S57.000U E) None of the answens is correct

13) Perez, Inc recently completed 56.000 units of a product that four pounds of dinect material per finishod unit The standard price of the direct uterial was S 50 per pound If the fim purchaned and consumed 225,000 pounds in manufacturing (cost-S1.881.000) the ditect-material quantity variance would be figured as A) S34000U B) SS7 D) S57.000U E) None of the answens is correct

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

13) Perea, Inc recently completed 56.000 units of a product that was expecte
four pounds of direct material per finished unit. The standard price of the direct
material was 58.50 per pound If the fins purchased and consumed 228,000 pounds in
manufacturing (cost S1,881,000), the direct-material quantity variance would be
figured as
A) S34.000U.
B) S57,000F
C) S34,000F
D) SS7,000U
E) None of the answers is correct

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