4. A purchasing manager buys 30,000 kg of H for a total cost of £105,000. The budget assumed a price of £4 per kg. In hindsight, it is found there was worldwide surplus of H and the average world price fell by 20%. What was the material price operating variance? (a) £9,000 F (b) £9,000 A (c) £24,000 F (d) £24,000 A

4. A purchasing manager buys 30,000 kg of H for a total cost of £105,000. The budget assumed a price of £4 per kg. In hindsight, it is found there was worldwide surplus of H and the average world price fell by 20%. What was the material price operating variance? (a) £9,000 F (b) £9,000 A (c) £24,000 F (d) £24,000 A

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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Question

4.
A purchasing manager buys 30,000 kg of H for a total cost of
£105,000. The budget assumed a price of £4 per kg.
In hindsight, it is found there was worldwide surplus of H and the
average world price fell by 20%.
What was the material price operating variance?
(a) £9,000 F
(b) £9,000 A
(c) £24,000 F
(d) £24,000 A

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A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is a. $180,000. c. $480,000. e. $300,000. b. $120,000. d. $60,000.
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