Torrance Industries has the following information concerning its direct materials: Direct Materials Standard Quantity 120,000 Actual Quantity 90,000 Standard Price $5 Actual Price $6 A. Determine the materials price variance and whether it is favorable or unfavorable. B. Determine the materials usage variance and whether it is favorable or unfavorable.

Torrance Industries has the following information concerning its direct materials: Direct Materials Standard Quantity 120,000 Actual Quantity 90,000 Standard Price $5 Actual Price $6 A. Determine the materials price variance and whether it is favorable or unfavorable. B. Determine the materials usage variance and whether it is favorable or unfavorable.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12EA: Acme Inc. has the following information available: A. Compute the material price and quantity, and...

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