Asked by
Kelvin Souza
on Nov 13, 2024
Verified
A company uses 8400 pounds of materials and exceeds the standard by 300 pounds. The quantity variance is $1800 unfavorable. What is the standard price?
A) $2
B) $4
C) $6
D) Cannot be determined from the data provided.
Quantity Variance
Measures the difference between the actual amount of materials or labor used in production and the amount that should have been used, according to standards.
Standard Price
The predetermined cost of acquiring a product or receiving a service under normal conditions.
Pounds
Often refers to a unit of weight used primarily in the British imperial and United States customary systems.
- Become proficient in the calculation of direct materials variance, with special attention to the variances found in price and quantity.
Verified Answer
BD
Learning Objectives
- Become proficient in the calculation of direct materials variance, with special attention to the variances found in price and quantity.