Adler Industries Uses a Standard Cost System in Which Direct

question 42

Essay

Adler Industries uses a standard cost system in which direct material is carried at standard cost.Adler has established the following standards: standard quantity of 8 pounds per unit, standard price $1.80 per pound.During January, Adler purchased 160,000 pounds of direct material at a cost of $304,000 and used 142,500 pounds in production of 18,700 units.
Required:
Calculate the direct materials quantity variance and indicate whether the variance is favorable or unfavorable.

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Definitions:

Binary Language

The foundational computer language consisting of two symbols, typically 0 and 1, representing off and on states, used for all basic computations.

Basic Level

Refers to the foundational or introductory level of knowledge, skills, or complexity in a particular field or activity.

Binary Numbers

A base-2 numeral system that uses only two symbols, typically 0 and 1, representing values using two different states.