Question

At the beginning of the year, a company had the following standard costs: Budgeted Direct materials 10 feet per unit Direct materials $1.50 per foot At year-end, they actually finished 10,000 units paying $1.60 per foot for the materials used and had a direct materials spending variance of $12,000 favorable. What is the actual quantity all of the direct materials actually used? 100,000 feet 86,250 feet not enough information given to calculate 138,000 feet

          At the beginning of the year, a company had the following standard costs:
Budgeted
Direct materials 10 feet per unit
Direct materials $1.50 per foot
At year-end, they actually finished 10,000 units paying $1.60 per foot for the materials used and had a direct materials spending variance of $12,000 favorable.
What is the actual quantity all of the direct materials actually used?
100,000 feet
86,250 feet
not enough information given to calculate
138,000 feet

At the beginning of the year, a company had the following standard costs:
Budgeted
Direct materials 10 feet per unit
Direct materials 1.50 per foot
At year-end, they actually finished 10,000 units paying1.60 per foot for the materials used and had a direct materials spending variance of 12,000 favorable.
What is the actual quantity all of the direct materials actually used?
100,000 feet
86,250 feet
not enough information given to calculate
138,000 feet

Added by Melinda L.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Rahul Mahato

05/15/2022

Step 1

Standard cost = 10,000 units * 10 feet per unit * $1.50 per foot Standard cost = $150,000 Show more…

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At the beginning of the year, a company had the following standard costs: Direct materials 10 feet per unit, Budgeted Direct materials $1.50 per foot. At year-end, they actually finished 10,000 units paying $1.60 per foot for the materials used and had a material variance of $12,000 favorable. What is the actual quantity of the direct materials actually used? A) 100,000 feet B) 86,250 feet C) Not enough information given to calculate D) 138,000 feet