Unfavourable materials quantity variance

Reference no: EM13157067

Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six kilograms of materials at $0.30 per kilogram. Actual production in November was 3,100 units of Titactium. There was a favourable materials price variance of $380 and an unfavourable materials quantity variance of $120. Based on these variances, what could one assume?

a. That more materials were used than were purchased.

b. That the actual cost per kilogram for materials was less than the standard cost per kilogram.

c. That more materials were purchased than were used.

d. That the actual usage of materials was less than the standard allowed.

Reference no: EM13157067

Questions Cloud

A catalyst decreases the activation energy of a particular : A catalyst decreases the activation energy of a particular exothermic reaction by 59 kJ/mol, to 51 kJ/mol. Assuming that the mechanism has only one step, and that the products are 94 kJ lower in energy than the reactants

Compute the standard error of estimated sales : Suppose a large sample is selected (instead of just 10). About 95 percent of the predictions regarding sales would occur between what two values?

How much is this account worth years : The interest earned is deposited back into the sacinvgs account each month. How much is this account worth 28 years? Answer to the nearest dollar.

What are the concentrations of cu2+ : If 4 g of CuSO4 is dissolved in 9.0x10^2 mL of 0.40 M aqueous NH3, what are the concentrations of Cu2+, Cu(NH34 2+, and NH3 at equilibrium? (Kf = 5x10^13)

Unfavourable materials quantity variance : Actual production in November was 3,100 units of Titactium. There was a favourable materials price variance of $380 and an unfavourable materials quantity variance of $120. Based on these variances, what could one assume?

Specific steps that managers can take : What are some specific steps that managers can take to help reduce workplace stress? What are possible legal problems that could arise if a manager knows too much about personal problems that are causing the employee's stress?

Explain how the introduction of policy : Relatively little pollution is emitted initially in the production process, but as the factory is used more intensively, pollution per unit of output increases and Explain how the introduction of this policy will affect the production decision of f..

Explain increase as the temperature rises : The activation energy for the isomerization ol cyclopropane to propene is 274 kJ/mol. By what factor does the rate of this reaction increase as the temperature rises

Is the fed currently pursuing an expansionary-neutral : What if any difficulties do you think may be encountered in implementing the current policy being pursued by Fed Chairman Ben Bernanke to cope with one of the worst financial crises in the US since the Great depression?

User Account

All Pages