Grayson Manufacturing's output for the current period was assigned a $250,000 standard direct materials cost. The direct materials variances included a $7,000 favorable price variance and a $4,500 unfavorable quantity variance. What is the actual total direct materials cost for the current period? a. $252.500 b. $253,500 c. $247,500 d. $249,500

Grayson Manufacturing's output for the current period was assigned a $250,000 standard direct materials cost. The direct materials variances included a $7,000 favorable price variance and a $4,500 unfavorable quantity variance. What is the actual total direct materials cost for the current period? a. $252.500 b. $253,500 c. $247,500 d. $249,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 13PA: Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the...

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Using variance analysis and interpretation Last year, Wrigley Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Wrigleys trial balance?
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What is the actual total direct material cost for the correct period?