Alpha Company manufactures Product P and sells it in packs of 10 units. The actual results...
Alpha Company manufactures Product P and sells it in packs of 10
units. The actual results for the first week in January are as
follows:
| Actual production | 25,000 packs of Product P |
| Actual cost of raw material Q | 96,500 units at $0.90 |
| Actual cost of labor | 460 hours at $6.25 |
| Standard quantity of raw material | 96,000 units for 30,000 units of Product P |
| Standard price of raw material Q | $0.95 |
Calculate the total material variance for Product P for the first
week in January.
a.$15,600 U
b.$4,580 F
c.$22,072 U
d.$6,472 F
Homework Answers
Total material variance = Standard cost - Actual cost
= 96000/30000*25000*0.95 - 96500*0.90
= $10850 Unfavorable
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