Oakton Incorporated manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The...
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Accounting
Oakton Incorporated manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling direct material price variances, and production managers are responsible for controlling usage variances. During May, the following results were reported for the production of American Oak armchairs: Required: a. Calculate the actual price paid per board foot purchased. Note: Do not round intermediote colculations. Round your answer to 2 decimal places. b. Calculate the standard quantity of materials allowed (in board feet) for the number of units produced. c. Calculate the direct materials usage variance. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). d. The purchasing manager may have purchased higher-than-standard quality raw material inputs is the most likely explanation for the price and usage variances
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