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Frisco Company recently purchased 110,000 units of raw material for $594,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $18.00 for each completed product. Frisco manufactured 33,305 finished units during the period just ended and used 101,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?

Frisco Company recently purchased 110,000 units of raw material for $594,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $18.00 for each completed product. Frisco manufactured 33,305 finished units during the period just ended and used 101,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?

FINANCIAL ACCOUNTING
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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Frisco Company recently purchased 110,000 units of raw material for $594,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $18.00 for each completed product. Frisco manufactured 33,305 finished units during the period just ended and used 101,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?
Transcribed Image Text:Frisco Company recently purchased 110,000 units of raw material for $594,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $18.00 for each completed product. Frisco manufactured 33,305 finished units during the period just ended and used 101,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?
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