The Standards for Product J42 Call for 3

question 17

Essay

The standards for product J42 call for 3.6 feet of a raw material that costs $14.00 per feet.Last month,5,500 feet of the raw material were purchased for $76,175.The actual output of the month was 1,260 units of product J42.A total of 4,800 feet of the raw material were used to produce this output.
Required:
a.What is the materials price variance for the month?
b.What is the materials quantity variance for the month?
c.Prepare journal entries to record the purchase and use of the raw material during the month.(All raw materials are purchased on account. )

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Definitions:

Labor

The effort by humans directed toward producing goods and services in an economy.

Management

Management involves the planning, organizing, leading, and controlling of an organization's resources to achieve specific objectives.

Common Goals

Objectives shared by a group of people, aiming to achieve a mutual outcome or interest.

Income Going

The flow of earnings or revenue generated from economic activities or investments over a given period.