Oriole, Inc. uses a standard cost system in which direct materials are carried at standard cost. Standards for one unit of product are: standard quantity of 9.5gallons and standard price $1.80 per gallon. During March, Oriole purchased 151, 600 gallons of direct materials at a cost of $301,600 and used 152, 100 gallonsin production of 19,600 units.Calculate the direct materials price and quantity variances and indicate whether each variance is favorable or unfavorable.Direct materials price variance$□Direct materials quantity variance$nQ..uy

Working NoteFor Material VariancesStandard Quantity =19,600 unitsActual Quantity = 19,600…

Answered: Oriole, Inc. uses a standard cost…

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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