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The Bowden Corporation makes a single product. Only one kind of direct material is used to make this ...

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The Bowden Corporation makes a single product. Only one kind of direct material is used to make this ...

The Bowden Corporation makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for June show the following data:

Number of units produced	10,000
Material price variance	$ 8,400	Favorable
Material quantity variance	$ 8,000	Unfavorable
Actual direct material purchased and used	21,000	pounds
Direct materials standard price	$ 8	per pound

There were no beginning inventories of direct materials.

The actual cost of direct material was:

▸

$8.12 per pound

▸

$8.00 per pound

▸

$7.60 per pound

▸

$7.42 per pound

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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