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Cultco Company Ltd Has Set the Following Direct Material Standards

question 38

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Cultco Company Ltd has set the following direct material standards per unit of product: 2.5 kg @ $3.00 per kg; $7.50 per unit. During April, actual direct material purchased and used amounted to 8000 kg at a cost of $3.10 per kg. Actual production amounted to 3000 units. Determine Cultco's direct material price variance.

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Definitions:

Berlin

The capital and largest city of Germany, known for its cultural heritage, historical significance, and role in world politics.

Fourteen Points

A statement of principles for peace that was to be used for peace negotiations in order to end World War I, proposed by U.S. President Woodrow Wilson.

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The 28th President of the United States (1913-1921) known for leading the country during World War I and advocating for the League of Nations.

Peace

A state or period in which there is no war or any other kind of conflict, often associated with tranquility, harmony, and the absence of hostility.

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