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    lexxixs's Avatar
    lexxixs Posts: 1, Reputation: 1
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    #1

    Oct 12, 2012, 10:02 AM
    Working backwards with price variances
    I have some Accounting homework that I am having a difficult time with. I am supposed to compute the total pounds of direct materials purchased with the following information:
    Direct Materials price variance (based on purchases) $176,000 F
    Direct materials efficiency variance $69,000 U
    Standard cost per pound of direct materials $11.50
    Standard allowance of direct materials for each unit of product 3 pounds
    Direct materials price variances $1.10 per pound
    During the month 30,000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process.

    Any help would be great, because I am stumped!
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Oct 12, 2012, 04:23 PM
    What exactly is the difficulty you are having? Use the information to determine quantities. Don't confuse information with important facts such as a marerial price variance

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