Question

Current Attempt in Progress Ceelo Company purchased (at a cost of $10,560) and used 2,200 pounds of materials during May. Ceelo's standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5.00 per pound. Production in May was 1,040 units. Compute the total, price, and quantity variances for materials. (Round answers to decimal places, e.g. 125.) Total Materials Variance $ Materials Price Variance Materials Quantity Variance $

Answer 1

Standard (1 unit)				Standard (1040 units)				Actual (1040 units)
Qty	Price	Amount		Qty	Price	Amount		Qty	Price	Amount
2	$      5.00	$   10.00		2080	$      5.00	$ 10,400.00		2200	$      4.80	$ 10,560.00
Materials Price Variance =			(Standard Price - Actual Price) x Actual Quantity
		=	($ 5 - $ 4.8) x 2200
		=	$ 440.00	(Favorable)
Materials Quan. Variance =			(Standard Quantity - Actual Quantity) x Standard Price
		=	(2080 - 2200) x $ 5
		=	$ 600.00	(Unfavorable)
Total Material Variance =			Standard Cost - Actual Cost
		=	$ 10400 - $ 10560
		=	$ 160.00	(Unfavorable)