Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unit quantity of 0.45 ounce of plastic per bottle. During the month of June, 240,000 bottles were produced using 110,000 ounces of plastic. The actual cost of plastic was $0.042 per ounce, and the standard price was $0.045 per ounce. There is no beginning or ending inventories of plastic.
Required:1. Calculate the materials price and usage variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable.

Materials Price Variance = ( Actual Quantity * Actual Price ) - (Actual Quantity * Standard Price )

= ( 110,000 * $ 0.042) - (110,000 * $ 0.045)

= $ 330 Favorable

Material Usage Variance = Standard Price * ( Standard Quantity - Actual Quantity)

= $ 0.045 * ( 108,000 - 110,000)

= $ 90 Unfavorable

Note :

Standard Quantity = Number of Bottles * 0.45 ounce of plastic per bottle

= 240,000 * 0.45

= 108,000 Ounces of Plastic

Explanation:

Total Variance =  240 Favorable

Explanation:

Materials Cost Variance = (Actual Amount × Standard Cost ) - (Actual Amount × Actual Cost )

Materials Cost Variance= (110,000 × $0.045) - (110,000 × $0.042)  

Materials Cost Variance= 4950  - 4620

Materials Cost = $330  Favorable

Usage Variance = (Standard Amount- Actual Amount) ×  Standard Cost

Usage Variance = (108,000 - 110,000) ×  $0.045

Usage Variance = $90 Unfavorable

Note :

Standard Amount = Number of Bottles × Standard Unit Quantity  

Standard Amount = 240,000 * 0.45

Standard Amount = 108,000 Ounces of Plastic

Thus,

Total Variance = Materials Cost Variance -  Usage Variance

Total Variance = 330 - 90

Total Variance =  240 Favorable

the answer is: guns or butter

hope i

-lavira : )

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know