Question

Marx Tees is a manufacturer of T-shirts. The standard amount of 100% cotton jersey fabric used to make each T-shirt is 2.40 yards. The standard price per yard of the fabric is $2.84. During last month, Marx purchased 6,200 yards of the jersey fabric for $17,360. The production department used 5,300 yards to produce 1,600 T-shirts during the month. Compute the material price and quantity variances. (Round answers to o decimal places, e.g. 125. Enter all variances as a positive number.) Material Price Variance Material Quantity Variances LINY TO TEYT

Answer 1

Answer:- Direct Material price variance= $248 F.

Direct Material Quantity variance = $4146 U

Explanation-

1)-Material price variance = (Standard price – Actual price) * Actual quantity purchase

= {$2.84 per yard – ($17360/6200 yards)}* 6200 yards

= $248 Favorable

2)-Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price

                                              =(3840 yards – 5300 yards)*$2.84 per yard

                                             = $4146 Unfavorable

Where:-

Standard Quantity = No. of yards per unit*Actual output

= 2.40 yards per unit *1600 units

= 3840 yards