Snapware Systems produces commercial strength cleansing supplies. Two of its main products are window cleaner that uses ammonia, and floor cleaner that uses bleach. Information for the most recent period follows: Product Names Window Cleaner (ammonia) Floor Cleaner (bleach) Direct materials information: Standard ounces per unit 16 oz. 24 oz. Standard price per ounce $0.75 ? Actual quantity used per unit 20 oz. 22 oz. Actual price paid for material $1.00 $0.90 Actual quantity purchased and used 1,500 oz. 2,800 oz.. Price variance ? $300 U
Snapware Systems produces commercial strength cleansing supplies. Two of its main products are window cleaner that uses ammonia, and floor cleaner that uses bleach. Information for the most recent period follows: Product Names Window Cleaner (ammonia) Floor Cleaner (bleach) Direct materials information: Standard ounces per unit 16 oz. 24 oz. Standard price per ounce $0.75 ? Actual quantity used per unit 20 oz. 22 oz. Actual price paid for material $1.00 $0.90 Actual quantity purchased and used 1,500 oz. 2,800 oz.. Price variance ? $300 U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Snapware Systems produces commercial strength cleansing supplies. Two of its main products are window cleaner that uses ammonia, and floor cleaner that uses bleach. Information for the most recent period follows:
|
Product Names |
Window Cleaner (ammonia) |
Floor Cleaner (bleach) |
|
Direct materials information: |
|
|
|
Standard ounces per unit |
16 oz. |
24 oz. |
|
Standard price per ounce |
$0.75 |
? |
|
Actual quantity used per unit |
20 oz. |
22 oz. |
|
Actual price paid for material |
$1.00 |
$0.90 |
|
Actual quantity purchased and used |
1,500 oz. |
2,800 oz.. |
|
Price variance |
? |
$300 U |
|
Quantity variance |
$1,500 U |
? |
|
Total direct materials variance |
? |
$678 F |
|
Number of units produced |
500 |
600 |
What is the standard price for bleach?
Select one:
a. $0.88/oz.
b. $1.09/oz.
c. $1.14/oz.
d. $0.79/oz.
e. $0.92/oz.
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