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Acoma, Inc., has determined a standard direct materials cost per unit of $8.20 (2 feet x $4.10 per foot). Last month, Acoma p

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Answer #1

Materials Price Variance = (SP-AP) *AQ

= (4.10-18640/4660)*4660

= 466 F

.

Materials Quantity Variance = (SQ-AQ) *SP

= (2190*2 - 4660)*4.10

= 1148 U

.

Materials spending variance = 466F + 1148U

= 682 U

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