During june, cisco company produced 12,000 chainsaw blades. the standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound. the actual cost was $7 per pound. the actual pounds of steel that cisco purchased were 19,500 pounds. all materials purchased were used. calculate cisco's materials usage variance. a. $10,500 f b. $10,500 u c. $12,000 u d. $12,000 f

Hence, Cisco's materials usage variance is  12,000 Unfavorable

So, the correct option is c. $12,000

Explanation:

Material Usage variance : The computation of material usage variance is shown below:

= (Standard Quantity - Actual Quantity ) × Standard price per pound

where,

Standard Quantity = Production units × Material allowed per unit

= 12,000 × 1.5

= 18,000 pounds

So,

Material Usage Variance = (18,000 - 19,500) × $8

                                         = 12,000 Unfavorable

Hence, Cisco's materials usage variance is  12,000 Unfavorable

So, the correct option is c. $12,000

This is false.

Explanation:

A value chain refers to a combination of the systems used by a company or organization for money-making. That has the implication as a value chain being made up of diverse subsystems useful for the formation of products and services. This is inclusive of the process from start to finish.

Porter’s Five Forces Model has been designed as a business analysis towards providing explanation as to why various industries have the ability of sustention of profitability in diverse levels. The Five Forces Model analyses in-depth for the industrial structure of a company along with its corporate strategy. These five forces frequently measure the intensity of the competition along with attractiveness, and profitability of the market or industry. Porter’s five forces are: