Question

PA5.

LO 8.2Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown.

	Large	Small
Rubber	3 feet at $0.25 per foot	1.25 feet at $0.25 per foot
Connector	1 at $0.03	1 at $0.03

At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $6,875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber.

1. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance?
2. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors?
3. If there was an unfavorable direct materials price variance of $125, how much did they pay per foot for the rubber?

Answer 1

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