Epplin Company
The following information is provided for Epplin Company for the month of September:
$\begin{array}{ll}
\underline{\text { Actual }} &\underline{ \text { Standard }} \
\text { 1,800 }\text { units } &5 \text { DLHs per unit @ } \$ 10.00 \text { per DLH } \
8,900 \text { DLHs @ } \$ 10.50 \text { per DLH } & \text { VOH rate per DLH } \$ .75 \
\text { Variable OH } \$ 6,400 & \text { FOH rate per DLH } \$ 1.90 \
\text { Fixed OH } \$ 17,500 &\text { Budgeted FOH \$16,910 }
\end{array}$

Refer to Epplin Company.What is the price variance?
A)$4,450 F
B)$4,450 U
C)$1,000 F
D)$1,000 U

Question

Epplin Company
The following information is provided for Epplin Company for the month of September:
$\begin{array}{ll}
\underline{\text { Actual }} &\underline{ \text { Standard }} \
\text { 1,800 }\text { units } &5 \text { DLHs per unit @ } \$ 10.00 \text { per DLH } \
8,900 \text { DLHs @ } \$ 10.50 \text { per DLH } & \text { VOH rate per DLH } \$ .75  \
\text { Variable OH } \$ 6,400 & \text { FOH rate per DLH } \$ 1.90 \
\text { Fixed OH } \$ 17,500 &\text { Budgeted FOH \$16,910 }
\end{array}$

Refer to Epplin Company.What is the price variance?
A)$4,450 F
B)$4,450 U
C)$1,000 F
D)$1,000 U

Quizplus · Accepted Answer

Price variance = (Actual price - Standard price) x Actual quantity

Actual price = Total actual cost / Total actual quantity = ($8,900 x $10.50 + $6,400 + $17,500) / 8,900 = $13.10 per DLH
Standard price = $10.00 per DLH

Price variance = ($13.10 - $10.00) x 8,900 = $27,890 U

Therefore, the answer is (B) $4,450 U.

Epplin Company the Following Information Is Provided for Epplin Company

Epplin Company
the Following Information Is Provided for Epplin Company