April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 50,000 feet of raw material for $200,000, and it takes 6 feet of raw materials to produce one park bench. In August, the company produced 9,000 park benches. The standard cost for material output was $108,000, 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 57,000 V Units C. What was the direct materials price variance for August? Direct materials price variance $ 4 x Unfavorable v
April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 50,000 feet of raw material for $200,000, and it takes 6 feet of raw materials to produce one park bench. In August, the company produced 9,000 park benches. The standard cost for material output was $108,000, 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 57,000 V Units C. What was the direct materials price variance for August? Direct materials price variance $ 4 x Unfavorable v
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 50,000 feet of raw material for $200,000, and
it takes 6 feet of raw materials to produce one park bench. In August, the company produced 9,000 park benches. The standard cost for material output was $108,000,
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
57,000 V Units
C. What was the direct materials price variance for August?
Direct materials price variance $
X Unfavorable v
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