Premier Candle Company manufactures candles. The standard direct materials quantity required to produce one tall candle is two pounds at a cost of $3.05 per pound. During November, 1,000 tall candles were produced using 1,910 pounds of direct materials that cost $4,966. What is the direct materials cost variance? (Round intermediary calculations to the nearest cent. Round the final answer to the nearest dollar.) A. $275 F
Premier Candle Company manufactures candles. The standard direct materials quantity required to produce one tall candle is two pounds at a cost of $3.05 per pound. During November, 1,000 tall candles were produced using 1,910 pounds of direct materials that cost $4,966. What is the direct materials cost variance? (Round intermediary calculations to the nearest cent. Round the final answer to the nearest dollar.) A. $275 F
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Premier Candle Company manufactures candles. The standard direct materials quantity required to produce one tall candle is two pounds at a cost of $3.05 per pound. During November, 1,000 tall candles were produced using 1,910
pounds of direct materials that cost $4,966.
pounds of direct materials that cost $4,966.
What is the direct materials cost variance? (Round intermediary calculations to the nearest cent. Round the final answer to the nearest dollar.)
$275 F
$860 U
$860 F
$275 U
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