The Standards for Product V28 Call for 7

question 101

Essay

The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per pound. Last month, 1,400 pounds of the raw material were purchased for $24,990. The actual output of the month was 160 units of product V28. A total of 1,300 pounds of the raw material were used to produce this output.The direct materials purchases variance is computed when the materials are purchased.Required:a. What is the materials price variance for the month?b. What is the materials quantity variance for the month?

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Definitions:

Commitment

Involves a pledge or promise to engage in some type of agreed-upon action or support a particular cause, relationship, or task over time.

Anxiety

A mental health condition characterized by feelings of worry, unease, or fear that are strong enough to interfere with daily activities.

Structured

Organized and planned in a clear, orderly, and systematic manner, often referring to activities, methods, or organizations.

Going Dutch

A practice where each person pays for their own expenses during a date or outing, rather than one person covering for all.