Calculate the direct materials price variance

Assignment Help Accounting Basics

Reference no: EM133765385

Problem: Accounting

A company purchased 10,000 pounds of raw materials at a cost of $2.50 per pound. However, the standard price per pound was $2.00.

a) Calculate the direct materials price variance.
b) Determine if this is favorable or unfavorable and explain why.
c) Explain why this is important for raw materials purchasing.

Reference no: EM133765385

Questions Cloud

Comparison of the age-structure pyramids : Based on a comparison of the age-structure pyramids, which of the following would likely be a higher priority in the Netherlands than in Niger?

Develop educational content on sustainability and practices : Develop and offer educational content on sustainability and ethical practices. Implement a trade-in program for older models to promote recycling and upgrades.

What role do women play in douglass narrative : What ideas does he challenge or assert? What role do women play in Douglass' narrative? Is the experience of slavery and slaveholding gendered?

Solve the accompanying puzzles in the assessment : Construct a predictive model using NN and other widgets in Orange. In class: Problem Solving (Puzzle) Based on the Orange output

Calculate the direct materials price variance : Calculate direct materials price variance. Determine if this is favorable or unfavorable and explain. Explain why this is important for raw materials purchasing

Healthcare services are delivered and received : Perform a literature search, and identify one or two examples of the changes in how healthcare services are delivered and received.

Fentanyl transdermal system for pain management : The nurse is caring for a client receiving the fentanyl transdermal system for pain management.

Which factors do you believe are most important and why : POL 217- Based off of both Zimring and the Great American crime article- which factors do you believe are most important and why?

Infections to client receiving chemotherapy : An oncology clinic nurse is reinforcing prevention measures for oropharyngeal infections to a client receiving chemotherapy.

User Account

All Pages