Question

PRINTER VERSION BACK Question 4 Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this working toward that as a goal. At present, the company uses the following standards. Materials Item Metal Plastic Rubber Per unit Cost 1 lb. 12 oz. 4 oz 63 per lb. $1.00 per lb 88c per Ib Direct labor Item Labor Predetermined overhead rate based on direct labor hours $4.28 Per unit Cost 15 min $8.00 per hr The January figures for purchasing, production, and labor are The company purchased 229,000 pounds of raw materials in January at a cost of 780 a pound. Production used 229,000 pounds of raw materials to make 115,500 units in January Direct labor spent 18 minutes on each product at a cost of s7.80 per hour Overhead costs for January totaled $54,673 variable and $73,800 fixed Answer the following questions about standard costs. Your answer is partially correct. Try again.

please awnser the material price variance red box

Answer 1

Material price variance = (Standard price-actual price)actual quantity

= (88-78)*229000

Material price variance = 2290000 F