Reference no: EM133138242

Question - The following information is available for Great Outdoors Corporation, which produces sturdy camping chairs.

Actual camping chairs produced = 5,000

Actual direct materials purchased and used = 21,250 pounds

Actual direct materials cost per pound = $4.90 per pound

Budgeted camping chairs produced = 5,500

Budgeted direct materials purchased and used = 22,000 pounds

Budgeted total spending on direct materials = $110,000

Required -

Use the information presented for Great Outdoors to compute the materials spending variance.

Use the information presented for Great Outdoors to compute the materials efficiency variance.

Use the information presented for Great Outdoors to compute the materials activity variance.

Using the information presented for Great Outdoors, which of the following statements are true? (Choose all that apply.)

-The materials spending variance is favorable

-The materials efficiency variance is favorable.

-The materials activity variance is favorable.