Question

Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 1.75 feet of leather and predicts leather will cost $3.00 per foot. Suppose Perfect Pet made 70 collars during February. For these 70 collars, the company actually averaged 200 feet of leather per collar and paid $250 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable 6. Calculate the direct materials price and quantity variances Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Rego Calculate the standard direct materials cost per unit. (Round your answer to 2 decimal places) Standard Direct Materials per Collar Req 2 and 3 >

Answer 1

1) Standard direct material cost per unit = 1.75*3 = $5.25

2) Direct material price variance = Favorable

Direct material quantity variance = Unfavorable

3) Direct material price variance = (3-2.50)*140 = $70 F

Direct material quantity variance = (122.50-140)*3 = 52.50 U