2. Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: Standard tons of direct material (steel) per car 4 Standard cost per ton of steel $17.00 During the month of March, the company produced 1,650 cars. Related production data for the month follows: 6,650 $115,000 Actual materials purchased and used (tons) Actual direct materials total cost Required: What is the direct materials price variance for the month? Show the calculation!
2. Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: Standard tons of direct material (steel) per car 4 Standard cost per ton of steel $17.00 During the month of March, the company produced 1,650 cars. Related production data for the month follows: 6,650 $115,000 Actual materials purchased and used (tons) Actual direct materials total cost Required: What is the direct materials price variance for the month? Show the calculation!
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:2. Michael Corporation manufactures railroad cars, which is its only product. The standards for the
railroad cars are as follows:
Standard tons of direct material (steel) per car
Standard cost per ton of steel
$17.00
During the month of March, the company produced 1,650 cars. Related production data for the month
follows:
6,650
$115,000|
Actual materials purchased and used (tons)
Actual direct materials total cost
Required:
What is the direct materials price variance for the month? Show the calculation!
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