Question4(a) [1 mark] Fluffo Pet Food manufactures vegan dog food. Fluffo budgeted for a monthly usage of 1,200 kilograms of organic soybeans to produce of 800 bags of vegan dog food. The standard price of 1 kilogram of organic soybeans is $10. During the month of August, Fluffo paid $12,000 for 1,000 kilograms of organic soybeans. It used 950 kilograms of these organic soybeans to produce 750 bags of vegan dog food. What is Fluffo’s direct material price variance for the month of August? A. $2,400 Unfavourable B. $2,250 Unfavourable C. $2,250 Favourable D. $2,000 Unfavourable E. $2,000 Favourable ResetMaximum marks: 1 Flag question undefined题目解析X解答完成正在帮您自动填写... 自动填写将优先使用云端题库答案可能与解析结果有所不同Direct Material Price VarianceFormula for Direct Material Price VarianceTo compute the direct material price variance, use the formula:\\[ \text{Direct Material Price Variance} = (\text{Actual Price} – \text{Standard Price}) \times \text{ActualQuantity Purchased} \\]Step-by-step Calculation Step 1: Determine the actual price per kilogram. Actual Price = Total Cost / Quantity Purchased = $\\$12,000$ / $1,000$ kg = $\\$12$ per kg Step 2: Calculate the variance. Variance = ($\\$12$ – $\\$10$) × $1,000$ kg = $\\$2$ × $1,000$ = $\\$2,000$ Since the actual price is higher than the standard price, the variance is unfavourable.The answer is: D. $\\$2,000$ Unfavourable. 点赞单项选择题
A
A. $2,400 Unfavourable
B
B. $2,250 Unfavourable
C
C. $2,250 Favourable
D
D. $2,000 Unfavourable
E
E. $2,000 Favourable

Question

Question4(a) [1 mark] Fluffo Pet Food manufactures vegan dog food. Fluffo budgeted for a monthly usage of 1,200 kilograms of organic soybeans to produce of 800 bags of vegan dog food. The standard price of 1 kilogram of organic soybeans is $10. During the month of August, Fluffo paid $12,000 for 1,000 kilograms of organic soybeans. It used 950 kilograms of these organic soybeans to produce 750 bags of vegan dog food. What is Fluffo’s direct material price variance for the month of August? A. $2,400 Unfavourable B. $2,250 Unfavourable C. $2,250 Favourable D. $2,000 Unfavourable E. $2,000 Favourable ResetMaximum marks: 1 Flag question undefined题目解析X解答完成正在帮您自动填写... 自动填写将优先使用云端题库答案可能与解析结果有所不同Direct Material Price VarianceFormula for Direct Material Price VarianceTo compute the direct material price variance, use the formula:\\[ \text{Direct Material Price Variance} = (\text{Actual Price} – \text{Standard Price}) \times \text{ActualQuantity Purchased} \\]Step-by-step Calculation Step 1: Determine the actual price per kilogram. Actual Price = Total Cost / Quantity Purchased = $\\$12,000$ / $1,000$ kg = $\\$12$ per kg Step 2: Calculate the variance. Variance = ($\\$12$ – $\\$10$) × $1,000$ kg = $\\$2$ × $1,000$ = $\\$2,000$ Since the actual price is higher than the standard price, the variance is unfavourable.The answer is: D. $\\$2,000$ Unfavourable. 点赞单项选择题

A

A. $2,400 Unfavourable

B

B. $2,250 Unfavourable

C

C. $2,250 Favourable

D

D. $2,000 Unfavourable

E

E. $2,000 Favourable

BlackTom AI · Accepted Answer

To approach this, I’ll walk through each answer choice by applying the direct material price variance formula and checking the numbers given.
Option A: $2,400 Unfavourable. If we test this, we’d need (Actual Price – Standard Price) × Actual Quantity Purchased = $2,400. Dividing both sides by Actual Quantity Purchased (1,000 kg) gives (Actual Price – Standard Price) = $2.40. That would imply an actual price per kg of $12.40, which does not line up with the stated actual cost of $12 per kg. So this is inconsistent with the data.
Option B: $2,250 Unfavourable. Here, (Actual Price – Standard Price) × 1,000 = 2,250. This would require (Actual Price – Standard Price) = $2.25 per kg, implying an actual price of $12.25 per kg. Again, this contradicts the given actual price of $12 per kg, so this option is incorrect.
Option C: $2,250 Favourable. This would suggest a positive variance, meaning actual price was lower than standard. But the problem states actual price is $12 per kg and the standard is $10 per kg, so the variance is not favourable; the actual price is higher, not lower. Thus this option is false.
Option D: $2,000 Unfavourable. Using the formula: (Actual Price – Standard Price) × Actual Quantity Purchased = ($12.00 – $10.00) × 1,000 kg = $2.00 × 1,000 = $2,000. Since actual price exceeds standard, the variance is indeed unfavourable. This aligns with the data provided.
Option E: $2,000 Favourable. This would again imply a favourable outcome (actual price below standard), which contradicts the fact that $12 per kg is higher than the $10 per kg standard. Therefore this option is incorrect.
In summary, only Option D yields the correct numeric result given the actual price, standard price, and quantity purchased, and it correctly labels the variance as unfavourable. The other options either miscalculate the math or misinterpret the direction of the variance based on the price comparison.