James Company manufactures t-shirts.During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:

-What is James' materials price variance assuming that materials purchased equals materials used?
A) $750,000 F
B) $700,000 F
C) $700,000 U
D) $750,00 U

Question

James Company manufactures t-shirts.During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:

-What is James' materials price variance assuming that materials purchased equals materials used?

-What is James' materials price variance assuming that materials purchased equals materials used?
A) $750,000 F 
B) $700,000 F 
C) $700,000 U 
D) $750,00 U

Quizplus · Accepted Answer

11ea8a4c_4972_d051_a0e6_f1015af288f8_TB5550_00

James Company Manufactures T-Shirts