Question

Solve for all question marks please!

E11-20A (similar to) Question Help Last month, Booth Corporation purchased and used the same quantity of ma EE(Click the icon to view the table.) Data Table Complete the following table. Medium speed bump Direct materials information Large speed bump (Round your answers to two decimal places.) Standard pounds per unit 14 Medium Standard price per pound 2.80 $ 2.00 $ Direct materials information speed bump Actual quantity purchased and used per unit 16 Standard pounds per unit 14 Actual price paid for material per pound $ 2.80 3.50 Standard price per pound 2.00 $ 7,840 U Direct materials price variance 4,800 U Actual quantity purchased and used per unit $ 2,000 F Direct materials quantity variance Actual price paid for material per pound $ 2.80 3,920 U Total direct material variance Direct materials price variance 4,800 U Number of units produced 500 700 Direct materials quantity variance $ 2,000 F 6800 Total direct material variance Print Done Number of units produced 500

Answer 1

(1)

for medium speed bump:

total direct material variance = Direct material price variance + direct material quantity variance

= $4800U + $2000F = $2800U

Material quantity variance = standard price x (standard quantity - actual quantity used)

$2000 = $2 x (7000 - actual quantity used)

- actual quantity used = ($2000/$2) - 7000

= 6000 units

therefore,

actual quantity purchased and used per unit = 6000/500 = 12 pounds per unit

Where,

Standard quantity = actual output x standard quantity per unit of output

= 500 x 14 = 7000 pounds

(2)

Total direct material variance = (standard quantity x standard price) - (actual quantity x actual price)

-$3920 = (standard quantity x $2.80) - (11200 x $3.50)

standard quantity = ($39200 - $3920)/$2.8

= 12600 units

therefore

standard pounds per unit = 12600/700 = 18

where,

actual quantity = 700 x $16 = $11200

now,

direct material quantity variance = standard price x (standard quantity - actual quantity used)

= $2.8 x (12600 - 11200)

= $3920 Favorable