Maurice Tutor

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Category > Management Posted 12 Nov 2017 My Price 7.00

unit of Teragram

14-15    Todco planned to produce 3,000 units of its single product, Teragram, during November. The stand- ard specifications for one unit of Teragram include 6 pounds of material at $0.30 per pound. The firm uses JIT in all operations. Actual production in November was 3,100 units of Teragram. The accountant computed a $380 favorable materials purchase-price variance and a $120 unfavorable materials usage variance.

Required  Which of the following conclusions do these variances best support?

1.    More materials were purchased than were used.

2.    More materials were used than were purchased.

3.    The actual cost of materials was less than the standard cost.

4.    The actual usage of materials was less than the standard allowed.

5.    The actual cost and usage of materials were both less than standard.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Nov 2017 02:11 PM My Price 7.00

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