f Company XYZ purchased 30 000 kg of brass metal at an actual price of $7.10 per
ID: 2402576 • Letter: F
Question
f Company XYZ purchased 30 000 kg of brass metal at an actual price of $7.10 per kg (standard price is $7.00 per kg), the entry to the direct material price variance should be: $3 000 debit O $3000+edit 0 $1 500 debit O $1 500 credit QUESTION 20 Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. Standard Price S1.80 per pound andard Standarad Cost Direct Matenals8 pounds Direct Labor $14.40 2.00 16.40 1 23 hour$8.00 per hour During November. Aarrow purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42.000, 90% of which were for direct labor. Arrow manufactured 19,000 units of product during November using 142.500 pounds of direct materials and 5,000 direct labor hours What is the direct materials price variance for November? $14,250 $14,400 $16,000Explanation / Answer
19)
Material price variance = Actual quantity×Standard cost per unit-Actual cost
= 30,000×($7-$7.10)
= $3,000 Unfavorable
Hence, correct option $3,000 debit
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