During the week, Hoster's potato chip manufacturing facility purchased 30,000 kilograms of potatoes at a price of $1.25 per kilogram. The standard price per kilogram is $1.40. During the week, 26,000 kg of potatoes were used. The standard quantity of potatoes that should have been used for the actual volume of output was 26,500 kg.
Record the following transactions using a standard cost accounting system:
1. The purchase of potatoes
2. The use of potatoes
3. Are the variances favourable or unfavourable? Explain

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The Answer of During the week, Hoster's potato chip manufacturing facility purchased 30,000 kilograms of potatoes at a price of $1.25 per kilogram. The standard price per kilogram is $1.40. During the week, 26,000 kg of potatoes were used. The standard quantity of potatoes that should have been used for the actual volume of output was 26,500 kg.
Record the following transactions using a standard cost accounting system:
1. The purchase of potatoes
2. The use of potatoes
3. Are the variances favourable or unfavourable? Explain

During the Week, Hoster's Potato Chip Manufacturing Facility Purchased 30,000