Fluegge inc. has provided the following data concerning one of the products in its standard cost system. variable manufacturing overhead is applied to products on the basis of direct labor-hours. inputs standard quantity or hours per unit of output standard price or ratedirect materials 5.7 liters $5,40 per literdirect labor 0.70 hours $20.60 per hourvariable manufacturing overhead 0.70 hours $5.50 per hourthe company has reported the following actual results for the product for decemberactual output 4,100 unitsraw materials purchased 25,100 litersactual price of raw materials $4.80 per literactual cost of raw materials purchased $120,480 raw materials used in production 23,360 litersactual direct labor-hours 2,700 hoursactual direct labor rate $21.20 per houractual direct labor cost $57,240 actual variable overhead rate $5.90 per houractual variable overhead cost $15,930 what is the raw materials price variance for the month?

$14,016 favorable

Explanation:

The computation of the raw materials price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

= 23,360 liters × ($5.40 - $4.80)

= 23,360 liters × $0.6

= $14,016 favorable

We simply deduct the actual price from the standard price and then multiplied it by the actual quantity so that actual value can come

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

a

explanation: