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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 9
Understanding Materials Cost Variances and Volume Variance
Undem's materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were unfavorable. The company's cost accountant has supplied the following standard cost information:
Instructions
a. Compute Undem's materials price variance.
b. Compute the standard quantity of materials allowed for producing 1,560 units of product.
c. Record the journal entry to charge work in process for the cost of materials used during the month.
d. Assume Undem's overhead volume variance is three times the amount of its materials quantity variance. Is the volume variance favorable or unfavorable? How do you know?
Undem's materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were unfavorable. The company's cost accountant has supplied the following standard cost information:
Instructions
a. Compute Undem's materials price variance.
b. Compute the standard quantity of materials allowed for producing 1,560 units of product.
c. Record the journal entry to charge work in process for the cost of materials used during the month.
d. Assume Undem's overhead volume variance is three times the amount of its materials quantity variance. Is the volume variance favorable or unfavorable? How do you know?
Explanation
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a. To compute the U Company's materials ...
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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