Gipple Corporation makes a product that uses a material with the quantity standa

Question

Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per unit of output and the price standard of $6.60 per gram. In January the company produced 4,000 units using 25.470 grams of the direct material. During the month the company purchased 28,000 grams of the direct material at $6.80 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $5,600 U $6,320 U $6,320 F $5,600 F

Explanation / Answer

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

                                  = (6.60-6.80)*28000

Material price variance = 5600 U

So answer is a) $5600 U

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.