Marks Company Makes One Product,for Which It Has Established the Following

question 33

Essay

Marks Company makes one product,for which it has established the following standards for materials:
Average quantity of material per unit of product: 4.5 pounds
Price per pound of materials: $16
During March,Marks made 10,000 units of the product,using 50,000 pounds at a total purchase price of $825,000.
Required:
(a)Determine the total flexible budget materials variance and indicate whether it is favorable or unfavorable.
(b)Calculate the materials price variance and indicate whether it is favorable or unfavorable.
(c)Determine the materials usage variance and indicate whether it is favorable or unfavorable.

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Definitions:

Exhibiting

To display or present for public viewing, often used in the context of art, science, or personal attributes.

Philippe Pinel

A French physician recognized as a pioneering figure in the early development of a more humane approach to the care of psychiatric patients.

Moral Treatment

A historical approach to treating mental illness that emphasized humane care and moral discipline, growing in popularity in the 19th century.

France

A country in Western Europe known for its rich history, culture, and contributions to art, philosophy, and science.