### Urban Products Corporation: Standard Cost SystemUrban Products Corporation uses a standard cost system. The company has established the following standard for the materials costs of one unit of product:#### Standard Cost Information- **Standard Quantity**: 6.0 pounds- **Standard Price**: $7.60/pound- **Standard Cost**: $45.60#### April TransactionsDuring April, the company purchased 171,000 pounds of direct material at a total cost of $1,316,700. The company manufactured 31,000 units of product during April using 187,240 pounds of direct materials. **Objective**: What is the materials price variance for April?*(Do not round intermediate calculations)*#### Variance FormulasYour instructor has provided the following variance formulas for you:1. **Direct Materials Variances** - **Materials Price Variance**: $ \text{AQ}(\text{AP} - \text{SP}) $ - **Materials Quantity Variance**: $ \text{SP}(\text{AQ} - \text{SQ}) $#### Explanation of Variables:- **AQ**: Actual Quantity of direct materials used.- **AP**: Actual Price per unit of direct materials.- **SP**: Standard Price per unit of direct materials.- **SQ**: Standard Quantity of direct materials allowed for actual production.Use these formulas and data to calculate and analyze the materials price variance for April.

Name: ### Urban Products Corporation: Standard Cost SystemUrban Products Co
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Description: ### Urban Products Corporation: Standard Cost SystemUrban Products Corporation uses a standard cost system. The company has established the following standard for the materials costs of one unit of product:#### Standard Cost Information- **Standard

Material price variance is the difference between actual price and standard price for the actual…

Business

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Cost system. The company has established the following standard for the materials costs of one unit of product: Standard Standard Quantity 6.0 pounds Standard Cost $45.60 Price $7.60/pound uring April, the company purchased 171,000 pounds of direct material at a total cost of $1,316,700. The company anufactured 31,000 units of product during April using 187,240 pounds of direct materials. What is the materials price ariance for April? (Do not round intermediate calculations.) ur instructor has provided the following variance formulas for you: rect Materials Variances aterials Price Variance: aterials Quantity Variance: AQ(AP - SP) SP(AQ - SQ)

Cost system. The company has established the following standard for the materials costs of one unit of product: Standard Standard Quantity 6.0 pounds Standard Cost $45.60 Price $7.60/pound uring April, the company purchased 171,000 pounds of direct material at a total cost of $1,316,700. The company anufactured 31,000 units of product during April using 187,240 pounds of direct materials. What is the materials price ariance for April? (Do not round intermediate calculations.) ur instructor has provided the following variance formulas for you: rect Materials Variances aterials Price Variance: aterials Quantity Variance: AQ(AP - SP) SP(AQ - SQ)

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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