Fischer Fabrication reported the following information concerning its direct materials: Direct materials purchased (actual) Standard cost of materials purchased Standard price times actual amount of materials used Actual production Standard direct materials costs per unit produced Required: Compute the direct materials cost variances. $ 366,200 $ 353,000 $325,000 55,200 units $ 6 Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Answer is complete but not entirely correct. Direct Materials Price variance $ OXU Efficiency variance $ 271,303 F Total direct materials cost variance $ 271,303 x U

Fischer Fabrication reported the following information concerning its direct materials: Direct materials purchased (actual) Standard cost of materials purchased Standard price times actual amount of materials used Actual production Standard direct materials costs per unit produced Required: Compute the direct materials cost variances. $ 366,200 $ 353,000 $325,000 55,200 units $ 6 Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Answer is complete but not entirely correct. Direct Materials Price variance $ OXU Efficiency variance $ 271,303 F Total direct materials cost variance $ 271,303 x U

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 6EA: Use the information provided to answer the questions. All material purchased was used in production....

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