Baker Products manufactures faux boulders to be used in various landscaping applications. A special resin is used to make the boulders. The standard quantity of resin used for each boulder is 5 pounds. Baker Products uses a standard cost of $2.00 per pound for the resin. The company produced 3,800 boulders in June. in that month, 18,400 pounds of resin were purchased at a total cost of $46,000. A total of 18,250 pounds were used in producing the boulders in June. Read the requirements Requirement 1. Calculate the direct material price variance. Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) ) = DM price variance Requirements 1. Calculate the direct material price variance 2. Calculate the direct material quantity variance.

Baker Products manufactures faux boulders to be used in various landscaping applications. A special resin is used to make the boulders. The standard quantity of resin used for each boulder is 5 pounds. Baker Products uses a standard cost of $2.00 per pound for the resin. The company produced 3,800 boulders in June. in that month, 18,400 pounds of resin were purchased at a total cost of $46,000. A total of 18,250 pounds were used in producing the boulders in June. Read the requirements Requirement 1. Calculate the direct material price variance. Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) ) = DM price variance Requirements 1. Calculate the direct material price variance 2. Calculate the direct material quantity variance.

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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