Whitley Company makes a product that is expected to use 1.2 pounds of material per unit of product.
Question # 00186065
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Updated on: 02/03/2016 12:52 PM Due on: 03/04/2016
Whitley Company makes a product that is expected to use 1.2 pounds of material per unit of product. The material has a standard cost of $2 per pound.
Whitley Company actually used 1.25 pounds of material per unit of product made in January 2015. The actual cost of material was $1.95 per pound.
Based on this information, the materials variances for January 2015 production would be: (Circle or highlight one) [4 points]
U=unfavorable; F= favorable
A) U for price and U for usage
B) U for price and F for usage
C) F for price and U for usage
D) F for price and F for usage
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Rating:
/5
Solution: Whitley Company makes a product that is expected to use 1.2 pounds of material per unit of product.