The united Company produced 2,500 units of the product X by using 4,700 kg of direct materials A out of 5,500 kg purchased at a price of $6.3 per kilogram. The standard quantity of direct material needed to produce 2,500 units of the product X is 4,400 Kg and the standard price of the material A is 6$/Kg the efficiency variance for the direct materials is : Select one: a. 1,800 U b. never a variance c. 1,800 F d. 1,650 U e. 1,650 F
The united Company produced 2,500 units of the product X by using 4,700 kg of direct materials A out of 5,500 kg purchased at a price of $6.3 per kilogram. The standard quantity of direct material needed to produce 2,500 units of the product X is 4,400 Kg and the standard price of the material A is 6$/Kg the efficiency variance for the direct materials is : Select one: a. 1,800 U b. never a variance c. 1,800 F d. 1,650 U e. 1,650 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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The united Company produced 2,500 units of the product X by using 4,700 kg of direct materials A out of 5,500 kg purchased at a price of $6.3 per kilogram. The standard quantity of direct material needed to produce 2,500 units of the product X is 4,400 Kg and the standard price of the material A is 6$/Kg
the efficiency variance for the direct materials is :
Select one:
a. 1,800 U
b. never a variance
c. 1,800 F
d. 1,650 U
e. 1,650 F
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