The Standards for Product V28 Call for 8

question 256

Essay

The standards for product V28 call for 8.4 pounds of a raw material that costs $19.20 per pound. Last month, 2,300 pounds of the raw material were purchased for $43,700. The actual output of the month was 250 units of product V28. A total of 2,200 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:

Testable

Referring to a hypothesis or theory that can be examined through experimental or observational methods to determine its validity.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment.

Gestalt Psychologists

Psychologists who emphasize the holistic approach to understanding the mind, suggesting that psychological phenomena should be viewed as organized, structured wholes.

Psychological Perspective

A particular approach or viewpoint in psychology that emphasizes specific aspects of human thought, behavior, and emotions.