The materials price variance should be computeda. when materials are purchasedb. when materials are used in productionc. based upon the amount of materials used in production when only aportion of materials purchased is actually usedd. based upon the difference between the actual quantity of inputs andthe standard quantity allowed for output times the standard price

The correct answer is:a. when materials are purchased Explanation:The materials price variance…

Answered: The materials price variance should be…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 6EA: Use the information provided to answer the questions. All material purchased was used in production....

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Similar questions

Use the information provided to answer the questions. All material purchased was used in production. A. What is the standard price paid for materials? B. What is the direct materials quantity variance? C. What is the total direct materials cost variance? D. If the direct materials price variance was unfavorable, what would be the standard price?
If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?
What are the two variances between the actual cost and the standard cost for direct materials?
The variable overhead rate variance is caused by the sum between which of the following? A. actual and standard allocation base B. actual and standard overhead rates C. actual and budgeted units D. actual units and actual overhead rates
A. What are the two variances between the actual cost and the standard cost for direct labor? B. Who generally has control over the direct labor cost variances?
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
Which of the following statements is true with respect to the materials price variance? Multiple Choice It is computed using the actual quantity of materials purchased. It is computed using the standard quantity of materials purchased. It is computed using the standard quantity of materials used in production. It is computed using the actual quantity of materials used in production.
Under Standard Costing System, direct material price variance shall be appropriately computed using A. Actual direct materials usedB. Actual direct materials purchasedC. Actual direct materials wastedD. Actual direct materials converted to work in process
1. The price variance for materials is the difference between the actual quantity of materials at the standard price and the standard quantity of materials at the standard price. A. True B. False 2. Standards are determined after the accounting period has ended, so comparisons can be made between standard costs (budgeted costs) and actual total costs and actual unit costs. A. True B. False
the difference between the actual price and the standard price, multiplied by the actual quantity of materials purchased is the
Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.
Material volume (quantity) variance is the difference between: a) Standard price x (Standard quantities - actual quantities) b) Standard price x (Standard quantities + actual quantities) c) Standard price x Standard quantities - actual quantities d) Standard price x Standard quantities - actual quantities x actual price

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