HarborCraft Inc. manufactures marine engine brackets using precision materials. The company uses a standard cost system. For the second quarter of 2024, the standard costs were: Materials: 2.0 pounds per unit @ $5.00 per pound Labor: 1.8 hours per unit @ $20.00 per hour During the quarter, HarborCraft produced 4,000 units. By the end of the period, records showed the company had used 8,100 pounds of materials and incurred actual total material costs of $41,310. What is the direct materials price variance?

HarborCraft Inc. manufactures marine engine brackets using precision materials. The company uses a standard cost system. For the second quarter of 2024, the standard costs were: Materials: 2.0 pounds per unit @ $5.00 per pound Labor: 1.8 hours per unit @ $20.00 per hour During the quarter, HarborCraft produced 4,000 units. By the end of the period, records showed the company had used 8,100 pounds of materials and incurred actual total material costs of $41,310. What is the direct materials price variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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