Standard and Actual Costs for Direct Materials for the Manufacture

question 88

Essay

Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows:
Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance.

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Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide.

Electron Transport Chain

A series of protein complexes and small molecules in the mitochondria that transfer electrons from donors to acceptors, producing ATP.

Glycolysis

A metabolic pathway that converts glucose into pyruvate, releasing energy and pyruvic acid.

Chemiosmosis

Process by which phosphorylation of ADP to form ATP is coupled to the transfer of electrons down an electron transport chain; the electron transport chain powers proton pumps that produce a proton gradient across the membrane; ATP is formed as protons diffuse through transmembrane channels in ATP synthase.