The Four Tops Company uses standard costing. During 2019, 12,000 pounds of Direct Material were purchased at an average cost of $5.20 per pound. Also during 2019, 10,500 pounds of Direct Material were used to produce 5,000 units. For 2019, the standards for Direct Material were 2 pounds per unit at $5.50 per pound. Compute the Direct Materials Price Variance for 2019.

The Four Tops Company uses standard costing. During 2019, 12,000 pounds of Direct Material were purchased at an average cost of $5.20 per pound. Also during 2019, 10,500 pounds of Direct Material were used to produce 5,000 units. For 2019, the standards for Direct Material were 2 pounds per unit at $5.50 per pound. Compute the Direct Materials Price Variance for 2019.

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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