Question

Ruby Company produces a chair for which the standard specifies 6 yards of material per unit. The standard price of one yard of material is $13.60. During the month, 7,700 chairs were manufactured, using 45,300 yards at a cost of $12.92 per yard.

Determine the following: Enter favorable variances as negative numbers.

a. Direct materials price variance |
$ | |

b. Direct materials quantity variance |
$ | |

c. Total direct materials cost variance |
$ |

Answer #1

a. Direct Materials price variance = (Actual quantity * Actual price) - (Actual quantity * Standard price)

= (45,300 * $12.92) - (45,300 * $13.6)

= $30,804 Favorable

b. Direct Materials quantity variance = (Actual quantity * Standard price) - (Standard quantity * Standard price)

= (45,300 * $13.6) - (7,700 * 6 * $13.6)

= $12,240 Favorable

c. Total direct materials cost variance = Direct Materials price variance + Direct Materials quantity variance

= $30,804 Favorable + $12,240 Favorable

= $43,044 Favorable

Ruby Company produces a chair that requires 6 yards of material
per unit. The standard price of one yard of material is $11.20.
During the month, 6,700 chairs were manufactured, using 41,000
yards at a cost of $10.64 per yard. Enter favorable variances as
negative numbers.
(a)
Determine the price variance.
$(Favorable/Unfavorable)
(b)
Determine the quantity variance.
$(F/U)
(c)
Determine the cost variance.
$(F/U)

Ruby Company produces a chair that requires 5 yards of material
per unit. The standard price of one yard of material is $9.50.
During the month, 4,500 chairs were manufactured, using 22,100
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a.
Price Variance
$
b.
Quantity Variance
$
c.
Cost Variance
$

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