The following materials standards have been established for a particular product Standard quantity per unit of output Standard price 5.1 meters $17.90 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output What is the materials price variance for the month? Multiple Choice 7,700 meters $142,450 7,300 meters 1,400 units
The following materials standards have been established for a particular product Standard quantity per unit of output Standard price 5.1 meters $17.90 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output What is the materials price variance for the month? Multiple Choice 7,700 meters $142,450 7,300 meters 1,400 units
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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Transcribed Image Text:The following materials standards have been established for a particular product:
Standard quantity per unit of output
Standard price
5.1 meters
$17.90 per meter
The following data pertain to operations concerning the product for the last month:
Actual materials purchased
Actual cost of materials purchased
Actual materials used in production
Actual output
What is the materials price variance for the month?
Multiple Choice
O
O
O
$4,620 U
$8,100 U
$2,960 U
$10,920 U
7,700 meters
$142,450
7,300 meters
1,400 units
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