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Joiner Corporation recently purchased 25,000 gallons of direct material at $5.60 per gallon. Usage by the end of the period amounted to 23,000 gallons. If the standard cost is $6.00 per gallon and the company believes computing variances at the earliest point possible, the direct-material price variance would be calculated as: Multiple Choice O $800 F. $9,200 U. $9,200 F. $10,000 F $10,000 U.

Joiner Corporation recently purchased 25,000 gallons of direct material at $5.60 per gallon. Usage by the end of the period amounted to 23,000 gallons. If the standard cost is $6.00 per gallon and the company believes computing variances at the earliest point possible, the direct-material price variance would be calculated as: Multiple Choice O $800 F. $9,200 U. $9,200 F. $10,000 F $10,000 U.

FINANCIAL ACCOUNTING
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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Joiner Corporation recently purchased 25,000 gallons of direct material at $5.60 per gallon. Usage by the end of the period amounted to 23,000 gallons. If the standard cost is $6.00 per gallon and the company believes in computing variances at the earliest point possible, the direct-material price variance would be calculated as: Multiple Choice O $800 F. $9,200 U $9,200 F. $10,000 F. $10,000 U.
Transcribed Image Text:Joiner Corporation recently purchased 25,000 gallons of direct material at $5.60 per gallon. Usage by the end of the period amounted to 23,000 gallons. If the standard cost is $6.00 per gallon and the company believes in computing variances at the earliest point possible, the direct-material price variance would be calculated as: Multiple Choice O $800 F. $9,200 U $9,200 F. $10,000 F. $10,000 U.
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