Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $24.00 per ounce and the standard quantity is 3.8 ounces per unit of output.Data concerning the compound for October appear belowCost of material purchased in OctoberMaterial purchased in OctoberMaterial used in production in OctoberActual output in October$ 24.10 per ounce2,350 ounces2,130 ounces610 unitsThe material was purchased on account and Calvin Corporation uses a standard costing system.The Materials Efficiency Variance for October would be recorded as a:Multiple Choicedebit of $5,280.debit of $4,512credit of $4,512credit of $5,280 Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $24.00 per ounce and the standard quantity is 3.8 ounces per unit of output.Data concerning the compound for October appear below:Cost of material purchased in OctoberMaterial purchased in OctoberMaterial used in production in OctoberActual output in OctoberThe material was purchased on account and Calvin Corporation uses a standard costing system.The Materials Efficiency Variance for October would be recorded as a:Multiple Choicedebit of $5,280.debit of $4,512credit of $4,512.credit of $5,280.$24.10 per ounce2,350 ounces2,130 ounces610 unitsE

Material efficiency variance is one of useful variance being used in business. This shows difference…

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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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Ingredient A12H is a material used to make Calvin Corporation's major product. The standard cost of Ingredient A12H is $24.00 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below Cost of material purchased in October Material purchased in October Material used in production in October Actual output in October $ 24.10 per ounce 2,350 ounces 2,130 ounces 610 units The material was purchased on account and Calvin Corporation uses a standard costing system. The Materials Efficiency Variance for October would be recorded as a: Multiple Choice debit of $5,280. debit of $4,512 credit of $4,512 credit of $5,280

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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