Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost. Ivanhoe has established thefollowing standards for one unit of product: standard quantity of 10 pounds, standard price $1.80 per pound. During January, Ivanhoepurchased 162,000 pounds of direct material at a cost of $308,000 and used 144,500 pounds in production of 19,100 units.Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable.Direct materials price variance$

Direct material price variance is one of material cost variance being used in business. It means…

Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost. Ivanhoe has established the following standards for one unit of product: standard quantity of 10 pounds, standard price $1.80 per pound. During January, Ivanho purchased 162,000 pounds of direct material at a cost of $308,000 and used 144,500 pounds in production of 19,100 units. Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable. Direct materials price variance $

Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost. Ivanhoe has established the following standards for one unit of product: standard quantity of 10 pounds, standard price $1.80 per pound. During January, Ivanho purchased 162,000 pounds of direct material at a cost of $308,000 and used 144,500 pounds in production of 19,100 units. Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable. Direct materials price variance $

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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