Paramount Manufacturing has collected the following data on one of its products. During the period, the company produced 30,000 units. The direct materials price variance is: Direct materials standard (8 $20.00 kg @ $2.50/kg) Actual finished unit cost of materials $455,000 per purchased Actual direct materials 180,000 kg purchased and used What is the direct materials price variance?

Paramount Manufacturing has collected the following data on one of its products. During the period, the company produced 30,000 units. The direct materials price variance is: Direct materials standard (8 $20.00 kg @ $2.50/kg) Actual finished unit cost of materials $455,000 per purchased Actual direct materials 180,000 kg purchased and used What is the direct materials price variance?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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