The following direct materials data pertain to the operations of Osborn Manufacturing Company for the month of December.
Standard materials price $4.00 per pound
Actual quantity of materials purchased and used 16,500 pounds
The standard cost card shows that a finished product contains 4 pounds of materials. The 16,500 pounds were purchased in December at a discount of 5% from the standard price. In December, 4,000 units of finished product were manufactured.
Instructions
Prepare a matrix for materials and calculate the materials variances.

Question

Quizplus · Accepted Answer

The Answer of The following direct materials data pertain to the operations of Osborn Manufacturing Company for the month of December.
Standard materials price $4.00 per pound
Actual quantity of materials purchased and used 16,500 pounds
The standard cost card shows that a finished product contains 4 pounds of materials. The 16,500 pounds were purchased in December at a discount of 5% from the standard price. In December, 4,000 units of finished product were manufactured.
Instructions
Prepare a matrix for materials and calculate the materials variances.

The Following Direct Materials Data Pertain to the Operations of Osborn