MC Qu. 51 Blaster, Inc., manufactures portable radios... Blaster, Inc., manufactures portable radios. Each radio...
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MC Qu. 51 Blaster, Inc., manufactures portable radios...
Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, the company purchased 12,000 units of the part for a total of $18,000. Also during May, the company manufactured 3,000 radios, using 10,000 units of part XBEZ52. The direct materials purchases variance is computed when the materials are purchased.
During May, the materials price variance for part XBEZ52 was:
$450 F
$600 F
$600 U
$450 U
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