Question

4. The following materials standards have been established for a particular product: 5.1 grams $11.95 per gram Standard quantity per unit of output .......... Standard price.... The following data pertain to operations concerning the product for the last month: Actual materials purchased...... Actual cost of materials purchased ............ Actual materials used in production........ Actual output..... 6.800 grams $86.360 6.300 grams 1,000 units What is the materials quantity variance for the month? The following materials standards have been established for a particular product: 6.8 meters Standard quantity per unit of output ..........! Standard price..... ........ - $14.40 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased ........... Actual cost of materials purchased .............. Actual materials used in production........... Actual output 4.400 meters $60,500 3,800 meters 400 units What is the materials price variance for the month?

hello,

I so need detailed answers for this question. thank you

Answer 1

A) Standard Quantity = Standard Quantity Per Unit * Actual Output

= 5.1* 1,000= $5,100

Material Quantity Variance =

Standard Price * ( Actual Quantity - Standard Quantity )

= 11.95 * ( 6,300 - $5,100)

= $ 14,340 Unfavourable

B) Material Price Variance =

Actual Quantity * ( Actual Price - Standard Price )

= $ 60,500 - ( 4,400 * $14.40)

= $60,500 - $ 63,360 = $ 2,860 Favorable