5) The following data relate to product no. 89 of Mansion Corporation. Direct material standard 3 square feet at $2.50 per square foot Direct material purchased 30,000 square feet at $2.60 per square foot Direct material consumed: 29,200 square feet Manufacturing activity: 9,600 units completed Assume that the company computes variances at the earliest point in time. The direct-material quantity variance is A) S1,040F. B) S1,000U. C) 52,000F D) S1,000F. E) S1,040U.

5) The following data relate to product no. 89 of Mansion Corporation. Direct material standard 3 square feet at $2.50 per square foot Direct material purchased 30,000 square feet at $2.60 per square foot Direct material consumed: 29,200 square feet Manufacturing activity: 9,600 units completed Assume that the company computes variances at the earliest point in time. The direct-material quantity variance is A) S1,040F. B) S1,000U. C) 52,000F D) S1,000F. E) S1,040U.

Name: 5) The following data relate to product no. 89 of Mansion Corporation
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Description: 5) The following data relate to product no. 89 of Mansion Corporation.Direct material standard: 3 square feet at $2.50 per square footDirect material purchased 30,000 square feet at $2.60 per square footDirect material consumed: 29,200 square feetMa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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

5) The following data relate to product no. 89 of Mansion Corporation.
Direct material standard: 3 square feet at $2.50 per square foot
Direct material purchased 30,000 square feet at $2.60 per square foot
Direct material consumed: 29,200 square feet
Manufacturing activity: 9,600 units completed
Assume that the company computes variances at the earliest point in time.
The direct-material quantity variance is:
A) S1,040F
B) S1,000U.
C) S2,000F
D) $1,000F.
E) S1,040U.

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