Question

Check my Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below) A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured (5 lbs. (2 hrs. (2 hrs. Standard 58 per lb.) $17 per hr.) 513 per hr.) Actual 42, 400 lbs. 38.20 per Ib. 16,400 hrs. $17.50 per hr. 5224,700 3,400 Exercise 23-9 Direct materials variances LO P2 AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price variance and the direct materials quantity variance Indicate whether each variance is favorable on unfavorable

Answer 1

Answer -> Compute the direct materials price variance and the direct materials quantity Variance. Indicate whether each variance is favourable or unfavourable. a Actual Costa) AQ X TAP 142400/ $8.20 Standard cost of Actual quantity | AO IX SP 42400 Ibs. $339200 Standard cost so x sp 42000 & $8 $336000 Ibs. Po $347680 Directmaterial (B- brice variance 4 Unfavourable unfavourable $ 3200 Direct material quantity Variance CC-B U Standard cost Actual cost $336000 $347680 $11680 U Unfavourable Direct materials cost variance Working Notes of @ Computation of the direct materials price variance & Direct materials price variance = (sp- Ap) X ACO Standard price = $8 per Ib. Actual pricecap) = $ 8.20 per Ib. Actual quantity (AQ) = 42400 Ibs. > Direct materials price variance = ($8 - $8.20 x 42400 lbs. Direct materials brice Variance = $0.20 x 424001 bs. = $ 8480 Unfavourable.

© Computation of the direct materials quantity variance : Direct materials = (SO-AQ)XSP quantity variance Standard quantity (SQ) = 42000 Ibs. Actual quantity (AO) = 42400 Ibs. Standard price (sp) = $8 per Ib. - Direct materials quantity variance = (42000 - 42400) x 88. = 400 Ibs. X$ 8 = $3200 Unfavourable. Ibs. Ibs. )

Answer 2

Answer -> Compute the direct materials price variance and the direct materials quantity Variance. Indicate whether each variance is favourable or unfavourable. a Actual Costa) AQ X TAP 142400/ $8.20 Standard cost of Actual quantity | AO IX SP 42400 Ibs. $339200 Standard cost so x sp 42000 & $8 $336000 Ibs. Po $347680 Directmaterial (B- brice variance 4 Unfavourable unfavourable $ 3200 Direct material quantity Variance CC-B U Standard cost Actual cost $336000 $347680 $11680 U Unfavourable Direct materials cost variance Working Notes of @ Computation of the direct materials price variance & Direct materials price variance = (sp- Ap) X ACO Standard price = $8 per Ib. Actual pricecap) = $ 8.20 per Ib. Actual quantity (AQ) = 42400 Ibs. > Direct materials price variance = ($8 - $8.20 x 42400 lbs. Direct materials brice Variance = $0.20 x 424001 bs. = $ 8480 Unfavourable.

© Computation of the direct materials quantity variance : Direct materials = (SO-AQ)XSP quantity variance Standard quantity (SQ) = 42000 Ibs. Actual quantity (AO) = 42400 Ibs. Standard price (sp) = $8 per Ib. - Direct materials quantity variance = (42000 - 42400) x 88. = 400 Ibs. X$ 8 = $3200 Unfavourable. Ibs. Ibs. )