Golfmart manufactures high-grade golf grips. Variance data for the polymer material used in the grips for the most recent year is given below: Direct materials price variance $1,650Unfavorable Direct materials quantity variance $2,250Favorable Flexible budget for DM quantity for actual production achieved 18,000pounds Budgeted price for Direct material $1.50per pound Assume that the beginning and closing inventories of the polymer material equal zero. Required: a) How much of the polymer material (in pounds) did Golfmart consume in production for the last year?b) What was the actual price per pound of the polymer material? Type the answer (Type only the number. DO NOT type $ sign or any other text) in the respective boxes below.Round your answers to two digits. Quantity of DM consumed in production Actual price paid by Golfmart
Req 1. | |||||||
Std Material qty for actual qty: | 18,000 | ||||||
Std price | 1.50 | ||||||
Material Price variance | 1650 | U | |||||
Material Quantity variance | 2,250 | F | |||||
Material qty variance = Std price (Std qty -Actual qty) | |||||||
2250 F = 1.50 (18000- Actual qty used) | |||||||
Actual Qty used: 16500 pounds | |||||||
Req 2. | |||||||
Material price Variance = Actual qty purchased (Std price - Actual price per pound) | |||||||
1650 U = 16500 (1.50- Actual price per pound) | |||||||
Actual price per pound = $ 1.60 per pound | |||||||
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