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The question is about standard cost involves calculation of different variances.
Marrick Company makes one product, for which it has established the following standards for materials:
Average quantity of material per unit of product: 4.5 pounds Price per pound of materials, $8 During March, Marrick made 10,000 units of the product, using 50,000 pounds at a total purchase price of $412,500.
Required: (a) Determine the total flexible budget materials variance and indicate whether it is favorable or unfavorable. (b) Calculate the materials price variance and indicate whether it is favorable or unfavorable. (c) Determine the materials usage variance and indicate whether it is favorable or unfavorable.
Money from these accounts could be mixed or further divided and sent to other accounts or individuals, who, in turn, would do the same, until several checks for $1000 or less eventually arrive at party headquarters.
Prepare journal entries for each event and adjusting entries.
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