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chloe ambersine alvarado
on Dec 17, 2024

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A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920. The materials price variance was $1,370 favorable. The standard price per kilogram for the raw material must be:

A) $0.20
B) $3.00
C) $3.20
D) $3.40

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, indicating how efficiently materials are being purchased.

Standard Price

A predetermined price that a company aims to pay for materials, labor, and other costs, used for budgeting and performance evaluation.

Raw Material

The basic material from which a product is made, typically unprocessed or minimally processed before being used in manufacturing processes.

  • Determine and scrutinize fluctuations in direct material costs.
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Arianna StokesDec 19, 2024
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