Consider the following data for a manufacturing company. Compute the price variance for materials. Direct Direct Materials Labor Standard inputs allowed for actual output * Standard $59,000 $95,000 prices Costs incurred $58,000 $100,000 Actual inputs Standard prices $61,000 $98,000 a. $1,000 favorable b. $2,000 unfavorable c. $3,000 unfavorable d. $2,000 favorable e. $1,000 unfavorable f. $3,000 favorable
Consider the following data for a manufacturing company. Compute the price variance for materials. Direct Direct Materials Labor Standard inputs allowed for actual output * Standard $59,000 $95,000 prices Costs incurred $58,000 $100,000 Actual inputs Standard prices $61,000 $98,000 a. $1,000 favorable b. $2,000 unfavorable c. $3,000 unfavorable d. $2,000 favorable e. $1,000 unfavorable f. $3,000 favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Consider the following data for a manufacturing company. Compute the price variance
for materials.
Direct
Direct
Materials
Labor
Standard inputs allowed for actual output * Standard
$59,000
$95,000
prices
Costs incurred
$58,000
$100,000
Actual inputs Standard prices
$61,000
$98,000
a. $1,000 favorable
b. $2,000 unfavorable
c. $3,000 unfavorable
d. $2,000 favorable
e. $1,000 unfavorable
f. $3,000 favorable
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