McKinney Manufacturing Company McKinney Manufacturing Company produces beach chairs.Chair frames are all the same size,but can be made from plastic,wood,or aluminum.Regardless of frame choice,the same sailcloth is used for the seat on all chairs.McKinney has set a standard for sailcloth of $9.90 per square yard and each chair requires 1 square yard of material.McKinney produced 500 plastic chairs,100 wooden chairs,and 250 aluminum chairs during June.The total cost for 1,000 square yards of sailcloth during the month was $10,000.At the end of the month,50 square yards of sailcloth remained in inventory.
Refer to McKinney Manufacturing Company.The unfavorable material price variance for sailcloth purchases for the month was

Question

Quizplus · Accepted Answer

The standard cost for 1,000 square yards should be $9,900 (1,000 yards x $9.90). The actual cost was $10,000, resulting in an unfavorable variance of $100 ($10,000 - $9,900).

McKinney Manufacturing Company McKinney Manufacturing Company Produces Beach Chairs