The standard cost of product 888 includes 3.00 units of direct materials at $5.50 per unit. During September, the company purchased 40,000 units of materials at $5.80 per unit and used those materials to produce 18,000 units. Compute the total, price, and quantity variances for materials.

The standard cost of product 888 includes 3.00 units of direct materials at $5.50 per unit. During September, the company purchased 40,000 units of materials at $5.80 per unit and used those materials to produce 18,000 units. Compute the total, price, and quantity variances for materials.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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Question

Compute the total, price, and quantity variance for materials?

The standard cost of product 888
includes 3.00 units of direct
materials at $5.50 per unit. During
September, the company
purchased 40,000 units of
materials at $5.80 per unit and
used those materials to produce
18,000 units.
Compute the total, price, and
quantity variances for materials.

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