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Jacques Company Planned to Use 18,000 Pounds of Material Costing

question 84

Essay

Jacques Company planned to use 18,000 pounds of material costing $2.50 per pound to make 4,000 units of its product. In actually making 4,000 units, the company used 18,800 pounds that cost $2.54 per pound. Calculate the direct materials price variance.


Definitions:

Principal Payment

A payment towards the original amount of a loan, not including interest.

Warranty Repairs

Services offered to fix or replace defective products within a specified period, as guaranteed by the warranty terms.

Contingency Loss

A potential financial loss that may occur in the future due to uncertain events or conditions.

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