Oddo Corporation makes a product with the following standard costs Standard Qant
ID: 2434454 • Letter: O
Question
Oddo Corporation makes a product with the following standard costs Standard Qantity orStandard Price or Standard Cost Hours 3.0 ounces 0.8 hours Per Unit $16.50 $9.20 $3.20 Rate $5.50 per ounce Direct materials Direct labor Variable overhead $11.50 per hour $4.00 per hour The company reported the following results concerning this product in December Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 6,000 units 5,800 units 17,400 ounces 4,840 hours 19,000 ounces 5.25 per ounce 13.20 per hour 470 per hour The company apples vartable overhead on the basis of direct labor-hours. The direct materials purchases vartance is computed when the materials are purchased. The matenals price variance for December is O $4350u O $4350 F O $4750 F O $4750 UExplanation / Answer
Material price variance =AQ purchased [AR-SR]
= 19000 [5.25- 5.5]
= 4750 F
Correct option is " C"
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