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Novosadov [1.4K]
3 years ago
9

Total Materials VarianceKrumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.7 oun

ces of aluminum per can. During the month of April, 450,000 cans were produced using 1,875,000 ounces of aluminum. The actual cost of aluminum was $0.10 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Calculate the materials price and usage variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable.
Business
1 answer:
Nataliya [291]3 years ago
3 0

Answer:

The correct answer for Price variance is $37,500( unfavorable) and for Usage variance is $19,200 ( Favorable).

Explanation:

According to the scenario, the given data are as follows:

Actual quantity = 1,875,000 ounces

Standard rate = $0.08 per ounce

Actual rate = $0.10 per ounce

Standard quantity = 4,50,000 × 4.7 = 2,115,000 ounces

So, Direct material price variance = Actual quantity × ( Standard rate - Actual rate )

= 1,875,000 × ( 0.08 - 0.10 )

= - $37,500 ( Negative shows Unfavorable)

and Direct material usage variance = standard rate per unit × (standard quantity - actual quantity)

=  $0.08 ( 2,115,000 - 1,875,000)

= 19,200 ( Positive shows Favorable)

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Explanation:

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3 years ago
Caddie Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 p
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Answer:

10.12%

Explanation:

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3 years ago
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The total number of points of work a team can accomplish in each scrum period is called? ________.
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Answer:

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