Question

Direct Materials Variances Tip Top Corp. produces a product that requires 15 standard gallons per unit....

Direct Materials Variances

Tip Top Corp. produces a product that requires 15 standard gallons per unit. The standard price is $6 per gallon. If 3,300 units required 51,000 gallons, which were purchased at $5.88 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Please indicate whether these are favorable or unfavorable.

a. Direct materials price variance $
b. Direct materials quantity variance $
c. Direct materials cost variance $

Homework Answers

Answer #1

Direct materials price variance = Actual quantity * (Standard price - Actual price)

= 51,000 * ($6 - $5.88)

= $6,120 Favourable

Direct materials usage variance = Standard price * (Standard quantity - Actual quantity)

= $6 * [(3,300*15) - 51,000]

= $9,000 Unfavourable

Direct materials cost variance = Direct materials price variance + Direct materials quantity variance

= $6,120 Favourable + $9,000 Unfavourable

= $2,880 Unfavourable

a. Direct materials price variance - $6,120 Favourable
b. Direct materials quantity variance $9,000 Unfavourable
c. Direct materials cost variance $2,880 Unfavourable
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Direct Labor Variances Tip Top Corp. produces a product that requires 8 standard hours per unit...
Direct Labor Variances Tip Top Corp. produces a product that requires 8 standard hours per unit at a standard hourly rate of $14 per hour. If 3,900 units required 32,100 hours at an hourly rate of $13.3 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $...
Direct Materials Variances Bellingham Company produces a product that requires 15 standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires 15 standard pounds per unit. The standard price is $7 per pound. If 3,100 units used 44,600 pounds, which were purchased at $7.21 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) 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...
Direct Materials Variances Bellingham Company produces a product that requires 12 standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires 12 standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 72,900 pounds, which were purchased at $10.29 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) 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...
Direct Materials Variances Bellingham Company produces a product that requires 8 standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires 8 standard pounds per unit. The standard price is $6.5 per pound. If 3,000 units required 24,500 pounds, which were purchased at $6.37 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 $ Favorable...
Direct Materials Variances Bellingham Company produces a product that requires 14 standard pounds per unit. The...
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...
Direct Materials Variances Bellingham Company produces a product that requires five standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires five standard pounds per unit. The standard price is $6 per pound. If 6,400 units used 31,400 pounds, which were purchased at $6.24 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) 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 $ b. Direct materials quantity...
Direct Materials Variances Bellingham Company produces a product that requires five standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires five standard pounds per unit. The standard price is $4 per pound. If 3,000 units used 15,500 pounds, which were purchased at $3.8 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) 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 $ b. Direct materials quantity...
Direct Materials Variances Bellingham Company produces a product that requires 9 standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires 9 standard pounds per unit. The standard price is $9 per pound. If 5,000 units required 45,900 pounds, which were purchased at $8.64 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 $ b....
Direct Materials Variances Bellingham Company produces a product that requires 14 standard pounds per unit. The...
Direct Materials Variances Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price is $8 per pound. If 5,100 units required 74,300 pounds, which were purchased at $7.76 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.
Bellingham Company produces a product that requires nine standard pounds per unit. The standard price is...
Bellingham Company produces a product that requires nine standard pounds per unit. The standard price is $6 per pound. If 6,000 units used 55,100 pounds, which were purchased at $5.82 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) 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 $ Favorable b. Direct materials quantity variance $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT