Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.20 (2 feet x $4.10 per foot). Last month, Acoma purchased and used 4,480 feet of direct materials, for which it paid $17,920. The company produced and sold 2,050 units during the month. Required: Calculate the direct materials price, quantity, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance
Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.20 (2 feet x $4.10 per foot). Last month, Acoma purchased and used 4,480 feet of direct materials, for which it paid $17,920. The company produced and sold 2,050 units during the month. Required: Calculate the direct materials price, quantity, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 9P: USD Inc. has established the following standard cost per unit:
Although 10,000 units were budgeted,...
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