Question

Brief Exercise 23-4 Simba Company's standard materials cost per unit of output is $10.32 (2.40 pounds x $4.30). During July, the company purchases and uses 2,904 pounds of materials costing $15,391 in making 1,100 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52. Total materials variance Materials price variance Materials quantity variances

Answer 1

	total materials variance
	actual cost - standard cost
	15,391         - 1100*10.32
	4039	U
	Materials price variance
	(Actual rate - standard rate)*AQ
	15,391       - 2904*4.30)
	2903.8	U
	Materails Quantity variance
	(AQ-SQ)*standard rate
	(2904    - 1100*2.40)*4.30
	1135.2	U