Det Acoma, Inc., has determined a standard direct materials cost per unit of $7.40 (2 feet x $3.70 per foot). Last month, Acoma purchased and used 4,760 feet of direct materials for which it paid $17,136. The company produced and sold 2,190 units during the month. Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) F Direct Materials Price Variance U Direct Materials Quantity Variance U Direct Materials Spending Variance
Det Acoma, Inc., has determined a standard direct materials cost per unit of $7.40 (2 feet x $3.70 per foot). Last month, Acoma purchased and used 4,760 feet of direct materials for which it paid $17,136. The company produced and sold 2,190 units during the month. Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) F Direct Materials Price Variance U Direct Materials Quantity Variance U Direct Materials Spending Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How would i solve this problem
Transcribed Image Text:Det
Acoma, Inc., has determined a standard direct materials cost per unit of $7.40 (2 feet x $3.70 per foot). Last month, Acoma purchased and used 4,760 feet of direct materials for which it
paid $17,136. The company produced and sold 2,190 units during the month.
Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by
selecting "F" for favorable, "U" for unfavorable.)
F
Direct Materials Price Variance
U
Direct Materials Quantity Variance
U
Direct Materials Spending Variance
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education