Question

Current Attempt in Progress oilla efax The standard cost of Product B manufactured by Pharrell Company includes 3.5 units of direct materials at $5.10 per unit. During June, 27300 units of direct materials are purchased at a cost of $4.90 per unit, and 27,300 units of direct materials are used to produce 7,700 units of Product B (a) le V Compute the total materials variance and the price and quantity variances Total materials variance $ reat $ Materials price variance Materials quantity variance $ oture (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.15 and the quantity purchased and used is 26,700 units. pture ates Total materials variance $ Materials price variance View 11 Materials quantity variance Cryp eTextbook and Media Attempts: 0 of 3 used Save for Later Submit Answer med yer < Prev Send to Gradebook Net

Answer 1

Answer:

a).

Total Material Variance

= Standard Cost of Production - Actual Cost of Production

= 7700*3.5*5.1 - 27300*4.9

= 137,445 - 133,770

= $3675Favorable

Material Price Variance

= Standard price of Actual quantity used - Actual price of Actual quantity used

= 5.1*27300 - 4.9*27300

=139230-133770

= $ 5460Favorable

Material Quantity Variance

= Standard quantiy of Material for Actual Production at Standard price - Actual quantiy of Material for Actual at Standard price Production

= 7700*3.5*5.1 - 27300*5.1

= 137,455 - 139,230

=$1785 Unfavorable

(b).

Total Material Variance

= Standard Cost of Production - Actual Cost of Production

= 7700*3.5*5.1 - 26700*5.15

=137445 - 137505

=$60 UnFavorable

Material Price Variance

= Standard price of Actual quantity used - Actual price of Actual quantity used

=26700*5.1 - 26700*5.15

=$1335 Unfavorable

Material Quantity Variance

= Standard quantiy of Material for Actual Production at Standard price - Actual quantiy of Material for Actual at Standard price Production

=7700*3.5*5.1 - 26700*5.1

=137445 - 136170

=1275 Favorable