Concord Corporation planned to use 1 yard of plastic per unit budgeted at $91 a yard. However, the plastic actually cost $90 per
1 answer:
Answer:
Total Material Variance = $10,060 Unfavorable
Explanation:
Provided Information,
Standard budgeted unit of raw material = 1 yard
Standard price per unit = $91.00
Actual price per yard = $91.00
Actual units produced = 4,600
Actual yards of plastic used = 4,660 yards
Standard yards for actual production = 4,600 1 yard = 4,600
Total Material Variance = Standard Cost for actual output - Actual Cost
Standard Cost = 4,600 $90 = $414,000
Actual Cost = 4,660 $91 = $424,060
Total Material Variance = $414,000 - $424,060 = - $10,060
Since value is negative as actual cost is more than budgeted, the variance is unfavorable.
Final Answer
Total Material Variance = $10,060 Unfavorable
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Answer:
The CPI for the given year is 123.
Explanation:
Consumer price index (CPI)
In the base year, the typical family bought 4 loaves of bread at $2 per loaf and 2 bottles of wine for $ 9 per bottle.
Cost at base year =$[(4×2)+(2×9)]
=$26
In a given year, bread cost $3 per loaf and wine cost $10 per bottle.
Cost at given year =$[(4×3)+(2×10)]
=$32
The CPI for the given year is
≈123