ABC corporation produces plastic bottles. Details of cost are given below: Standard unit quantity per plastic bottle Actual production of bottles Actual quantity used Actual cost of plastic Standard price 0.045 ounce per plastic bottle 240,000 110,000 $0.042 per ounce $0.045 per ounce Material price variance for ABC corporation is: a. $330 Unfavorable b. $720 Favorable c. $330 Favorable d. $720 Unfavorable

ABC corporation produces plastic bottles. Details of cost are given below: Standard unit quantity per plastic bottle Actual production of bottles Actual quantity used Actual cost of plastic Standard price 0.045 ounce per plastic bottle 240,000 110,000 $0.042 per ounce $0.045 per ounce Material price variance for ABC corporation is: a. $330 Unfavorable b. $720 Favorable c. $330 Favorable d. $720 Unfavorable

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

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ABC corporation produces plastic bottles. Details of cost are given below:
Standard unit quantity per plastic bottle
Actual production of bottles
Actual quantity used
Actual cost of plastic
Standard price
0.045 ounce per plastic bottle
240,000
110,000
S0.042 per ounce
$0.045 per ounce
Material price variance for ABC corporation is:
a. $330 Unfavorable
b. $720 Favorable
c. $330 Favorable
d. $720 Unfavorable

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