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

question 123

Essay

Ayers Company reports the following standards for direct materials for the year:
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 Actual Quantity Direct Materials Used (AQU)for actual production

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Definitions:

Lead Underwriter

The primary bank or financial institution responsible for arranging and managing a syndicate of underwriters for a public offering or financing deal.

Subscription Price

The price at which existing shareholders are allowed to buy additional shares in a company during a rights offering, typically at a discount to the current market price.

Rights Offering

A process in which a company offers its shareholders the opportunity to buy additional shares, typically at a discount, before the company offers them to the public.

Market Price

Market Price is the current price at which an asset or service can be bought or sold.