Buzz Company uses 40,000 gallons of materials for which they paid P7.00 a gallon. The materials price variance was P80,000 favorable. What is the standard price per gallon? A. 2.00 B. 5.00 C. 7.00 D. 9.00

Buzz Company uses 40,000 gallons of materials for which they paid P7.00 a gallon. The materials price variance was P80,000 favorable. What is the standard price per gallon? A. 2.00 B. 5.00 C. 7.00 D. 9.00

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 17EA: The production cost for a waterproof phone case is $7 per unit and fixed costs are $23,000 per...

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Question

Buzz Company uses 40,000 gallons of materials for which they paid P7.00 a gallon. The materials price variance was P80,000 favorable. What is the standard price per gallon?

A. 2.00

B. 5.00

C. 7.00

D. 9.00

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