ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds @ $1.00 per pound; Direct labor: 1 hour @ $10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the materials price variance. $720 U $500 F $500 U $720 F Click the answer you think is right.
ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds @ $1.00 per pound; Direct labor: 1 hour @ $10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the materials price variance. $720 U $500 F $500 U $720 F Click the answer you think is right.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Company has set the following standards for one unit of product: Direct materials: 0.5
pounds @ $1.00 per pound; Direct labor: 1 hour @ $10.00 per hour. The company produced
35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost
of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the materials price
variance.
$720 U
$500 F
$500 U
$720 F
Click the answer you think is right.
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