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McNabb Corporation Makes Shoe Polish

question 25

Essay

McNabb Corporation makes shoe polish. The standard direct materials quantity is .5 pounds per container at a cost of $2.25 per pound. The actual usage for the production of 33,000 containers was .55 pounds per cushion at an actual cost of $2.20 per pound. Calculate the direct materials price variance and the direct materials quantity variance.


Definitions:

New Prospects

Potential customers who have been identified as having a probable interest in a product or service but have not yet made a purchase.

Increase Sales

Strategies or actions taken to upraise the number of products or services sold, thus enhancing revenue.

Inactive Accounts

Accounts that are no longer in use or have not had any activity for a specified period of time.

Develop New Prospects

The process of identifying potential new customers who might be interested in a company's products or services.

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