Question

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 $

Answer 1

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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