Question

The standard cost of Product B manufactured by Bramble Company includes 2.30 units of direct materials at $6.70 per unit. During June, 26,800 units of direct materials are purchased at a cost of $6.65 per unit, and 26,800 units of direct materials are used to produce 11,500 units of Product B. Compute the total materials variance and the price and quantity variances. Total materials variance $ Materials price variance $ Materials quantity variance $ Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.75 and the quantity purchased and used is 26,700 units. Total materials variance $ Materials price variance $ Materials quantity variance $

Answer 1

SQ Data Standard Price 6.70 Per unit Standard quantity Per unit 2.3 Units Standard Quantity for Actual Output (11500*2.3) 26450 Pounds Actual Output 11500 Units Actual Quanity Used AQ 26800 Units Actual Price of Material AP 6.65 Per unit Answers Total Material Cost Variance 1005 Unfavorable Mateial Price Variance (SP-AP)* AQ purchased = (6.70-6.65)*26800 1340 Favourable Matrial Quanity Varaince (SQ-AQ) *SP= (26800-26450)*6.70 2345 Unfavourable Assuming The Purchase price $6.75 and the for 26,700 Units Total Material Cost Variance 3010 Unfavourable Mateial Price Variance (SP-AP)* AQ purchased = (6.70-6.75)*26700 1335 Unfavorable Matrial Quanity Varaince (SQ-AQ) *SP= (26700-26450)*6.70 1675 Unfavorable