Fairfield Co

question 81

Essay

Fairfield Co. collected the following information about its production activities for the current year.
a. Compute the direct materials price and quantity variances and indicate whether each is favorable or unfavorable.
b. Prepare the journal entry to record the issuance of direct materials into production.
Actual costs and quantities:
Direct materials used 95,000 lbs. @ $6.30 per lb.
Units completed during the year, 50,000 units
Standard costs and quantities:
Price per lb. of direct material, $6.05
Two lbs. of direct material per unit

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Definitions:

Operational Definition

A clear, precise way to define and measure a variable or phenomenon, making it empirically testable.

Independent Variable

The variable in an experiment that is manipulated by the researcher to observe its effect on the dependent variable.

Control Condition

A scenario or setup in an experiment where no treatment or experimental condition is applied, serving as a benchmark to measure the effects of the treatment.

Scientific Method

A systematic approach to research where a problem is identified, relevant data is gathered, a hypothesis is formulated, and the hypothesis is empirically tested.