A. What is April Industries' standard price for one unit of material? Standard cost per unit s 8. What was the total number of units of material used to produce the August output? Actual quantity feet Units C. What was the direct materials price variance for August? Direct materials price variance $ 5x Unfavorable ✔
A. What is April Industries' standard price for one unit of material? Standard cost per unit s 8. What was the total number of units of material used to produce the August output? Actual quantity feet Units C. What was the direct materials price variance for August? Direct materials price variance $ 5x Unfavorable ✔
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Transcribed Image Text:April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 70,000 feet of raw material for $420,000, and
It takes 6 feet of raw materials to produce one park bench. In August, the company produced 11,000 park benches. The standard cost for material output was $132,000,
and there was an unfavorable direct materials quantity variance of $6,000.
A. What is April Industries' standard price for one unit of material?
Standard cost per unit
B. What was the total number of units of material used to produce the August output?
Actual quantity feet
Units
C. What was the direct materials price variance for August?
Direct materials price variance $
X Unfavorable ✔
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