Reference no: EM133135502
Question - The following information is available for Great Outdoors Corporation, which produces sturdy camping chairs.
Actual camping chairs produced = 5,000
Actual direct materials purchased and used = 21,250 pounds
Actual direct materials cost per pound = $4.90 per pound
Budgeted camping chairs produced = 5,500
Budgeted direct materials purchased and used = 22,000 pounds
Budgeted total spending on direct materials = $110,000
Required - Use the information presented for Great Outdoors to compute the materials spending variance.
Use the information presented for Great Outdoors to compute the materials efficiency variance.
Use the information presented for Great Outdoors to compute the materials activity variance.
Using the information presented for Great Outdoors, which of the following statements are true? (Choose all that apply.)
1) The materials spending variance is favorable
2) The materials efficiency variance is favorable.
3) The materials activity variance is favorable.
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