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Anestetic [448]
3 years ago
10

Gipple Corporation makes a product that uses a material with the quantity standard of 7.8 grams per unit of output and the price

standard of $6.50 per gram. In January the company produced 3,900 units using 25,370 grams of the direct material. During the month the company purchased 27,900 grams of the direct material at $6.70 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice a. $6,084 F b. $5,580 U c. $6,084 U d. $5,580 F
Business
1 answer:
Roman55 [17]3 years ago
4 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Standard quantity= 7.8 grams per unit of output

Standard price= $6.50 per gram.

During the month the company purchased 27,900 grams of the direct material at $6.70 per gram.

To calculate the material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (6.5 - 6.7)*27,900

Direct material price variance= $5,580 unfavorable.

It is unfavorable because the actual price was higher than estimated.

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What steps did jim moon take to build a relationship between his business and bank rhode island? 2. what collateral, if any, do
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3 years ago
You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills 3.10
Dvinal [7]

Answer:

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Explanation:

For computing the real rate of return, we need to apply the formula which is shown below:

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So,

The real rate = {(1 + nominal rate) ÷  (1 + inflation rate)} - 1

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