Question

In: Accounting

Sheffield has a standard of 1.5 pounds of materials per unit, at $6 per pound. In...

Sheffield has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2000 units, Sheffield used 3200 pounds of materials at a total cost of $18720. Sheffield's total variance is

$900 F.
$1200 U.
$480 U.
$720 U.

Solutions

Expert Solution

The correct answer is option 4).$720 U.

Here U refers to Unfavorable Variance.

Which means Sheffield has incurred $720 more compared to the standard cost allowed for production of 2,000 units.

Hope you understood the solution. If you have any doubt please leave your doubt in the comment section so that I can clarify your doubt.

Thank you.

ekkarill92 answered 1 year ago
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