The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May:Materials PurchasedMaterials Used36,000 units23,000 unitsYou find a copy of the budget which shows that materials were budgeted at $0.60 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwritten notes among the accountants work papers, which indicate the following:Materials price varianceMaterials efficiency variance$ 360 F$ 1,400 FWhat was the total actual cost of the direct materials purchased during May?Multiple Cholce$13,800$21,240$21.600 The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. Inreviewing the records, you find the following information for May:Materials PurchasedMaterials UsedYou find a copy of the budget which shows that materials were budgeted at $0.60 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwrittennotes among the accountant's work papers, which indicate the following:Materials price variance$360 F$ 1,400 FMaterials efficiency varianceWhat was the total actual cost of the direct materials purchased during May?Multiple Choice$13,80036,000 units23,000 units$21,240$21,600

We can calculate actual cost per unit of material purchased by using material price variance…

The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased Materials Used You find a copy of the budget which shows that materials were budgeted at $0.60 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwa notes among the accountant's work papers, which indicate the following: Materials price variance Materials efficiency variance $360 F $ 1,400 F What was the total actual cost of the direct materials purchased during May? Multiple Choice $13,800 36,000 units 23,000 units $21,240 $21,600

The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately. The company's accountant resigned without leaving adequate records or explanations for what she did. In reviewing the records, you find the following information for May: Materials Purchased Materials Used You find a copy of the budget which shows that materials were budgeted at $0.60 per unit. You know that the materials price variance is recorded at the time of purchase and you find some handwa notes among the accountant's work papers, which indicate the following: Materials price variance Materials efficiency variance $360 F $ 1,400 F What was the total actual cost of the direct materials purchased during May? Multiple Choice $13,800 36,000 units 23,000 units $21,240 $21,600

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

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