Question

JSH Inc. makes a unit called CC. CC has a standard of 2 yards of fabric for each CC. The standard price per yard of fabric is $3.

During the period, JSH planned to make 6,400 units of CC, but actually made 6,000 CCs. JSH used 11,600 yards of fabric and incurred an actual cost of $34,500 for the fabric.

What is the sales volume variance for direct materials for the current period?

Group of answer choices

a) $2,400 Favorable

b) $2,400 Unfavorable

c) $3,900 Favorable

d) $1,500 Unfavorable

JSH Inc. makes a unit called CC. CC has a standard of 2 yards of fabric for each CC. The standard price per yard of fabric is $3.

During the period, JSH planned to make 6,400 units of CC, but actually made 6,000 CCs. JSH used 11,600 yards of fabric and incurred an actual cost of $34,500 for the fabric.

What is the direct material efficiency variance for the current period?

Group of answer choices

a) $2,400 Unfavorable

b) $2,400 Unfavorable

c) $1,200 Favorable

d) $300 Favorable

Answer 1

	Standard PU:
	Qty	Rate	Amount		Direct Material Sales Volume Variance:
	2.00	3.00	6.00		(Actual Qty -Budgeted Qty)* Standard Price
					(6000-6400)*6
	Standard for Actual Units:				-2400
	Qty	Rate	Amount		B
	12,000	3.00	36,000
					Direct Material Efficiency Variance:
	Actual Total:				(Standard Qty-Actual Qty)* Standard Price
	Qty	Rate	Amount		(12000-11600)*3
	11,600	2.97	34,500		1200	Favourable
					C