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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