A company uses a standard costing system and is analyzing its costs for the most recent period with respect to materials, the compeny uses the following standards: Standard quantity of material allowed per unit 7lbs Standard Price of material $17 per lb Budgeted units to be produced 600 units Beginning raw materials inventory 0lbs Ending Raw Materials Inventory 400 lb Actual material purchase 6100 lbs Actual cost of materials purchased $119690 Actual units produced 680 units Based on this information the material quantity variance would be Answer:??
A company uses a standard costing system and is analyzing its costs for the most recent period with respect to materials, the compeny uses the following standards: Standard quantity of material allowed per unit 7lbs Standard Price of material $17 per lb Budgeted units to be produced 600 units Beginning raw materials inventory 0lbs Ending Raw Materials Inventory 400 lb Actual material purchase 6100 lbs Actual cost of materials purchased $119690 Actual units produced 680 units Based on this information the material quantity variance would be Answer:??
Chapter1: Financial Statements And Business Decisions
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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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A company uses a standard costing system and is analyzing its costs for the most recent period with respect to materials, the
compeny uses the following standards:
Standard quantity of material allowed per unit 7lbs
Standard Price of material $17 per lb
Budgeted units to be produced 600 units
Beginning raw materials inventory 0lbs
Ending Raw Materials Inventory 400 lb
Actual material purchase 6100 lbs
Actual cost of materials purchased $119690
Actual units produced 680 units
Based on this information the material quantity variance would be
Answer:??
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