Dandridge Company Established a Direct Materials Standard of 4 Pounds

question 44

Essay

Dandridge Company established a direct materials standard of 4 pounds at $4.50 per pound for one of its products.During April,Dandridge produced 22,000 units of the product,using 86,000 pounds of material.
Required:
Based on this information,
(a)Which variance can you calculate?
(b)What is the dollar amount of the variance?
(c)Is the variance favorable or unfavorable?
(d)Do you consider the variance to be sufficiently material that managers should investigate to discover the cause of the variance?

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Definitions:

Keystone Species

A species that has a disproportionately large effect on its ecosystem, influencing the types and numbers of other species in a community.

Sea Stars

Sea stars, also known as starfish, are marine invertebrates belonging to the class Asteroidea, known for their radial symmetry and a body plan consisting of a central disc from which arms (or rays) extend.

Intertidal Zone

The area of the shoreline that is exposed to the air at low tide and submerged under water at high tide, home to diverse organisms.

Mussels

Aquatic mollusks with a bivalve shell, widely consumed as seafood, and known for their role in aquatic ecosystems as filter feeders.