A company manufactures a single product L, for which the standard material cost is as follows. $ per unit Material 14 kg x $3 42 During July, 800 units of
L、were manufactured, 12,000 kg of material were purchased for $33,600, of which 11,500 kg were issued to production. SM Co values all inventory at standard cost. What are the material price and usage variances for July?
A、Price Usage $2,300 (F) $900 (A)
B、Price Usage 2,300 (F) $300 (A)
C、Price Usage $2,400 (F) $900 (A)
D、Price Usage $2,400 (F) $840 (A)
L、were manufactured, 12,000 kg of material were purchased for $33,600, of which 11,500 kg were issued to production. SM Co values all inventory at standard cost. What are the material price and usage variances for July?
A、Price Usage $2,300 (F) $900 (A)
B、Price Usage 2,300 (F) $300 (A)
C、Price Usage $2,400 (F) $900 (A)
D、Price Usage $2,400 (F) $840 (A)
【参考答案及解析】
Since inventories are valued at standard cost, the material price variance is based on the materials purchased. $ 12,000 kg material purchased should cost (x$3) 36,000 but did cost 33,600 Material price variance 2,400(F) 800 units manufactured should use (x 14 kg) 11,200 kg but did use 11,500kg Usage variance in kg 300kg(A) x standard price per kg x$3 Usage variance in $900 (A)
Since inventories are valued at standard cost, the material price variance is based on the materials purchased. $ 12,000 kg material purchased should cost (x$3) 36,000 but did cost 33,600 Material price variance 2,400(F) 800 units manufactured should use (x 14 kg) 11,200 kg but did use 11,500kg Usage variance in kg 300kg(A) x standard price per kg x$3 Usage variance in $900 (A)