contestada

(The following information applies to the questions displayed below.
term
ns li
Saskatewan Can Company manufactures recyclable soft-drink cans. A
unit of production is a case of 12 dozen cans. The following standards
have been set by the production-engineering staff and the controller.
ook
Len
en W
rint
Direct Labor:
Quantity, 0.16 hour
Rate, $8.00 per hour
Direct Material:
Quantity, 9 kilograms
Price $0.42 per kilogram
erences
du. C
owth
sines
Actual material purchases amounted to 233,200 kilograms at $0.475
per kilogram. Actual costs incurred in the production of 22,000 units
were as follows:
arkets
pwth
Direct Labor:
Direct material:
$33,264 for 3,960 hours
$98,230 for 206,800 kilograms
onge
innov
sign,
Required:

Respuesta :

The direct material price variance of Saskatewan Can Company will be $6552.

How to calculate the direct material price variance?

From the information given, it should be noted that the direct material price variance will be calculated thus.

Firstly, the actual materials cost will be:

= Actual quantity × Actual price

= 218400 × $0.65

= $141960

The projected materials cost will be:

= 218400 × $0.62

= $135408

Therefore, the price variance will be:

= $141960 - $135408

= $6552

Learn more about price variance on:

https://brainly.com/question/25417216

Otras preguntas