April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $240,000, and it takes 5 feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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    April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $240,000, and it takes 5 feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $7,000.

    A. What is April Industries’ standard price for one unit of material?

    Standard cost per unit $fill in the blank 1

    B. What was the total number of units of material used to produce the August output?

    Actual quantity feet fill in the blank 2 Units

    C. What was the direct materials price variance for August?

    Direct materials price variance $ fill in the blank 3
     

     

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