Question

Check my work [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Part 2 of 3 Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. @ $8 per lb.) (3 hrs. @ $16 per hr.) (3 hrs. @ $11 per hr.) Actual 44,300 lbs. @ $8.20 per lb. 21,700 hrs. @ $16.50 per hr. $245,900 7,300 1.11 points Skipped Exercise 23-9 Direct materials variances LO P2 eBook Hint AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Print Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.

Answer 1

Solution:

Direct Material Cost Variance
Actual Cost				Standard cost for actual quantity				Standard Cost
AQ	*	AP		AQ	*	SP		SQ	*	SP
44300	*	$8.20		44300	*	$8.00		43800	*	$8.00
	$3,63,260.00				$3,54,400.00				$3,50,400.00
			$8,860.00				$4,000.00
Direct Material Price Variance				$8,860.00	Unfavorable
Direct Material Qty variance				$4,000.00	Unfavorable
Total Direct material Cost variance				12,860.00	Unfavorable