Bella Company purchased 20,000 pounds of direct material at $0.70 per pound.

The standard cost per

pound of material is $0.60 per pound. The general ledger entry to record the issuance of materials would
include:
A) a debit to Materials Price Variance $2,000.
B) a credit to Materials Price Variance of $2,000.
C) a credit to Raw Materials of $0.70 per pound times the number of pounds issued.
D) a credit to Raw Materials of $0.60 per pound times the number of pounds issued.
Level: Medium LO: 2,7 Ans: D

The following materials standards have been established for a particular raw material used in the
company’s sole product:

The following data pertain to operations concerning the product for the last month:

What is the materials quantity variance for the month?

A) $3,320 F
B) $3,150 F
C) $4,980 U
D) $4,725 U
Level: Easy LO: 2 Ans: A