Based upon the table, the price for the year was: Based upon the table, the tota
ID: 2481375 • Letter: B
Question
Based upon the table, the price for the year was: Based upon the table, the total cost for materials was: $45.000 favorable $45.000 unfavorable $25.003 unfavorable $15.000 unflavored Peyton is responsible for controlling expenses. but is not for generating He a manager of a(n) Liabttty center B Revenue center. Investment center Cost center Which of the following items would be classified as a decision? Cost of a new machine The quality of the products proceed by the machine Depreciation of ousting machine Book value of the existing machineExplanation / Answer
Answer
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Material price variance = (actual quantity*standard price) – (Actual quantity*Actual price)
= (5000*5*10) – (5000*5*5)
=250000 – 125000
= $ 125000 favourable
Answer : A. $ 125000 favourable
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Material Usage variance = (standard quantity * Standard price) – (Actual quantity*standard price)
= (5000*2*10) – (5000*5*10)
=100000 – 250000
= 150000 unfavourable
Answer : B. $ 150000 unfavourable
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Total material cost variance = Material price variance + Material Usage variance
= $ 125000 (favourable) + $ 150000 (unfavourable)
= $ 25000 (unfavourable)
Answer : C. $ 25000 unfavourable
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Answer : D. Cost Center
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Answer : B. The Quality of the products produced by the machine