Lakewood Inc

question 36

Essay

Lakewood Inc.uses a standard cost system.Materials standards are 7 components per widget at $12 per component.During August,Lakewood Inc.purchased 64,500 components for $768,750,using the components to produce 8,600 widgets.Calculate the:
a.direct materials price variance.
b.direct materials quantity variance.

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Definitions:

Cross Border Fund

An investment fund that seeks to invest in assets located in countries other than where the fund is domiciled.

Benchmark

A standard or point of reference against which things may be compared or assessed, often used in investing to measure the performance of securities or portfolios.

Equity Index

A benchmark that measures the performance of a specific section of the stock market by tracking the price of selected stocks.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used as a measure of risk.