Question

# The standard cost of Product B manufactured by Pharrell Company includes 3 units of direct materials...

The standard cost of Product B manufactured by Pharrell Company includes 3 units of direct materials at \$5.00 per unit. During June, 29,000 units of direct materials are purchased at a cost of \$4.70 per unit, and 29,000 units of direct materials are used to produce 9,400 units of Product B.

(a)

Compute the total materials variance and the price and quantity variances.

 Total materials variance \$ Neither favorable nor unfavorableFavorableUnfavorable Materials price variance \$ Neither favorable nor unfavorableFavorableUnfavorable Materials quantity variance \$ FavorableUnfavorableNeither favorable nor unfavorable

(b)

Compute the total materials variance and the price and quantity variances, assuming the purchase price is \$5.15 and the quantity purchased and used is 28,000 units.

 Total materials variance \$ FavorableNeither favorable nor unfavorableUnfavorable Materials price variance \$ FavorableNeither favorable nor unfavorableUnfavorable Materials quantity variance \$ Neither favorable nor unfavorableFavorableUnfavorable

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