Glue For All has developed the following material standard to produce one container of Glue-It: 96 ounces of Chemical A at $0.15 per ounce. Glue For All planned to produce 2,000 containers of Glue- It during July. The company purchased 1,500 gallons (192,000 ounces) of Chemical A at a cost of $0.14 per ounce in July. The company used 1,480 gallons to produce 1,950 containers of Glue-It. How much is the material price variance? A) $1,920 favorable B) $1,894 favorable C) $336 unfavorable D) $1,584 unfavorable
Glue For All has developed the following material standard to produce one container of Glue-It: 96 ounces of Chemical A at $0.15 per ounce. Glue For All planned to produce 2,000 containers of Glue- It during July. The company purchased 1,500 gallons (192,000 ounces) of Chemical A at a cost of $0.14 per ounce in July. The company used 1,480 gallons to produce 1,950 containers of Glue-It. How much is the material price variance? A) $1,920 favorable B) $1,894 favorable C) $336 unfavorable D) $1,584 unfavorable
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Glue For All has developed the following material standard to
produce one container of Glue-It: 96 ounces of Chemical A at $0.15
per ounce. Glue For All planned to produce 2,000 containers of Glue-
It during July. The company purchased 1,500 gallons (192,000
ounces) of Chemical A at a cost of $0.14 per ounce in July. The
company used 1,480 gallons to produce 1,950 containers of Glue-It.
How much is the material price variance?
A) $1,920 favorable
B) $1,894 favorable
C) $336 unfavorable
D) $1,584 unfavorable
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