Solly Corporation produces a product for national distribution. Standards for the product are: • Materials: 12 ounces per unit at 60¢ per ounce. • Labor: 2 hours per unit at $8 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: • Materials: 14,000 ounces purchased and used at a total cost of $7,700. • Labor: 2,500 hours worked at a total cost of $20,625. The materials price variance is: Multiple Choice $600 F $600 U $700 F $700 U

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Solly Corporation produces a product for national distribution. Standards for the product are:
• Materials: 12 ounces per unit at 60¢ per ounce.
• Labor: 2 hours per unit at $8 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows:
• Materials: 14,000 ounces purchased and used at a total cost of $7,700.
• Labor: 2,500 hours worked at a total cost of $20,625.
The materials price variance is:
Multiple Choice
$600 F
$600 U
$700 F
$700 U
Transcribed Image Text:Solly Corporation produces a product for national distribution. Standards for the product are: • Materials: 12 ounces per unit at 60¢ per ounce. • Labor: 2 hours per unit at $8 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: • Materials: 14,000 ounces purchased and used at a total cost of $7,700. • Labor: 2,500 hours worked at a total cost of $20,625. The materials price variance is: Multiple Choice $600 F $600 U $700 F $700 U
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