ABC corporation produces plastic bottles. Details of cost are given below:
Standard unit quantity per plastic bottle
Actual production of bottles
Actual quantity used
Actual cost of plastic
Standard price
0.045 ounce per plastic bottle
240,000
110,000
$0.042 per ounce
S0.045 per ounce
Material price variance for ABC corporation is:
a. $330 Unfavorable
b. $720 Favorable
c. $330 Favorable
d. $720 Unfavorable
Answer
А A
CB
D
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