Ayers Company Reports the Following Standards for Direct Materials for the Year

question 49

Essay

Ayers Company reports the following standards for direct materials for the year:
Standard cost per pound $4.75
Standard amount per finished good 8.5 pounds
During the year, 460,000 finished goods were produced. The direct materials price variance was $14,200 unfavorable. The direct materials flexible budget variance was $980 favorable.
Calculate the following items regarding direct materials for Ayers Company for the year:
a. Direct materials quantity variance
b. Standard quantity of direct materials for actual production
c. Actual pounds of direct materials used for actual production

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Definitions:

Cancer

A disease characterized by the uncontrolled growth and spread of abnormal cells, which can form tumors and potentially lead to death if untreated.

Malignant Neoplasm

A cancerous tumor that invades surrounding tissues and has the potential to spread to distant body parts.

Malignant Cells

Abnormal and cancerous cells that have the potential to invade and destroy nearby tissue and spread to other parts of the body.

Verbal Cues

Non-physical signals used in communication, like tone of voice or speech pace, to convey or supplement meaning.