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Author Question: Paulson Corporation manufactures tablecloths, which is its only product. The standards for ... (Read 124 times)

nautica902

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Paulson Corporation manufactures tablecloths, which is its only product.  The standards for tablecloths are as follows:

Standard direct materials cost per metre $11
Standard direct materials quantity per tablecloth (metres)2
Standard direct labour cost per hour $15
Standard direct labour hours per tablecloth0.5

During the month of September, the company produced 1,000 tablecloths.  Related production data for the month follows:

Actual metres of direct material purchased and used2,200
Actual direct materials total cost $22,900
Actual direct labour hours2,100
Actual direct labour cost incurred $17,850


What is Paulson Corporation's direct materials price variance for the month?
◦ $1,300 favourable
◦ $2,200 unfavourable
◦ $2,200 favourable
◦ $1,300 unfavourable


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Marked as best answer by nautica902 on Jan 5, 2020

Jbrasil

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nautica902

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Reply 2 on: Jan 5, 2020
Excellent


phuda

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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