Question 8 Kennedy Corporation makes a product with the following standard costs

Question

Question 8 Kennedy Corporation makes a product with the following standard costs: standard Quantity or Hours Standard Price or Rate Standard Cost per Unit $57.40 Not yet answered Points out of 3 P Flag question Direct materials Direct labor Variable overhead The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The 8.2 pounds 0.4 hours 0.4 hours $7.00 per pound $20.00 per hour $2.00 per hour $0.80 y used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 22,000 pounds of the direct material at $7.52 per pound. The actual direct labor rate was $19 20 per hour and the actual variable overhead rate was $1.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. 12 The materials price variance for June is: Select one O a $21,324.57 O b. $23,634.29 Oc. $10,322.00 O d. $11.440.00 Ch 7 Exam Ch 10 Ch 8 Ch 8& Walsh Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The compan total fixed manufacturing overhead cost of $58.000, variable manufacturing overhead of $2.00 per Question 9 y based its predetermined overhead rate for the current year on Notyet answered ions 10:1

Explanation / Answer

d. $11440 ,

Direct material price variance = actual material purchased * [actual price - standard price]

= 22000 * [$7.52 - $7]

= 22000 * [$7.52 - $7]

= $11440 Unfavorable

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