Asked by Kalindi Schneider on Jul 24, 2024
Verified
To record the purchase of direct materials, the general ledger would include what entry to the materials price variance account?
A) $1,500 credit.
B) $1,500 debit.
C) $6,000 debit.
D) $6,000 credit.
Materials Price Variance
The difference between the actual cost of materials used in production and the standard (expected) cost.
Standard Quantity Of Hours
The standard quantity of hours refers to the pre-determined amount of labor hours estimated to be necessary to produce a single unit of output.
Standard Cost Per Mip
The predetermined cost of manufacturing one unit of product, where Mip is typically a measure of output.
- Figure out and examine differences in costs of materials, paying special attention to price and quantity variances.
- Determine the obligations linked to distinct variances.
Verified Answer
Learning Objectives
- Figure out and examine differences in costs of materials, paying special attention to price and quantity variances.
- Determine the obligations linked to distinct variances.
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