You know that the materials price variance is recorded at

Reference no: EM13484580

The Heavenly 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 = 20,000 units

Material used = 15,000 units

You find a copy of the budget which shows that materials were budgeted at $0.60/unit. You know that the materials price variance is recorded at the time of purchase and you find some handwritten notes among the accountant's work papers, which indicate the following:

Materials price variance = $200 favorable

Materials efficiency (quantity) variance = $600 favorable

1.What was the total actual cost of the direct materials purchased during May?

$9000 , $11800, $12000, $12200

2.What was the total standard cost of direct materials purchased during May?

$9150 , $11800 , $12000 , $12200

3. What was the total standard cost of direct materials allowed during May?

$8260 , $8400 , $9440, $9600

Reference no: EM13484580

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