The best and most correct answer among the choices provided by the question is the first choice. On the other hand, the answer for the second question is the second choice. I hope my answers has come to your help. God bless and have a nice day ahead!
Answer:
$700,000
Explanation:
The computation of the total raw materials used is shown below:
= Beginning raw material inventory + purchase of raw material - ending raw material inventory
= $250,000 + $750,000 - $300,000
= $700,000
We simply added the purchase and deduct the ending inventory to the beginning inventory so that the raw material used could come
Answer:
I guess horizontal merger
Answer:
$1,200 favorable
Explanation:
Given,
Standard unit price for direct materials, SP = $8 per gallon
Actual direct materials price, AP = $22,800
Actual number of direct materials, AQ = 3,000 gallons
Actual unit price for direct materials = Actual direct materials price ÷ Actual number of direct materials
Actual unit price for direct materials = $22,800 ÷ 3,000 gallons
Actual unit price for direct materials = $7.6 per gallon
We know,
Direct Material Price Variance = (SP − AP ) × AQ
Direct Material Price Variance = $(8 - 7.6) × 3,000 gallons
Direct Material Price Variance = $1,200 favorable
