Question

# Direct Materials Variances Bellingham Company produces a product that requires 14 standard pounds per unit. The...

Direct Materials Variances Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price is \$6 per pound. If 3,400 units required 49,000 pounds, which were purchased at \$6.3 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance \$ Unfavorable b. Direct materials quantity variance \$ c. Direct materials cost variance \$

 direct material price variance = (standard price - actual price )actual qty (6-6.3)49000 -14700 U SP>AP=F direct material qty variacne = (standard qty - actual qty)standard price (**47600-49000)*6 8400 F AQ>SQ=F direct material qty variacne = standard cost - actual cost 3400*14*\$6 - 49000*\$6.3 285600 - 308700 -23100 U SC>AC=F

**47600= 3400*14

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