General Accounting Omega Electronics manufactures a product where each unit requires0.5 pounds of direct materials at $3 per pound. In producing 40,000units, the company used 20,800 pounds of material at $3.10 perpound. What is the materials price variance?

Step 1: Analysis of information givenStandard price per pound = $3Actual quantity used = 20,800…

Answered: Omega Electronics manufactures a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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Omega Electronics manufactures a product where each unit requires 0.5 pounds of direct materials at $3 per pound. In producing 40,000 units, the company used 20,800 pounds of material at $3.10 per pound. What is the materials price variance?