Problem two :
The Day Company manufactures decorative scarecrows that have a standard cost of $1.75 per pound for direct materials used in the manufacturing process. During September 15,000 pounds of materials were purchased for $2.00 per pound, and 12,000 pounds were actually used in making 5,000 scarecrows. There were no beginning inventories.
Required:
【題組】
a. Determine the materials price variance assuming that materials costs are the responsibility of the
materials purchasing manager.