Question

Need help on large speed bump. How to calculate standard pounds per unit and direct materials quantity variance?

Last month, Banner Corporation purchased and used the same quantity of material in producing its product, speed bumps for traffic control. (Click the icon to view the table.) Complete the following table (Round your answers to two decimal places.) Large speed bump Data Table $ Medium speed bump Large speed bump 13 Direct materials information Standard pounds per unit Standard price per pound Actual quantity purchased and used per unit Actual price paid for material per pound Direct materials price variance Direct materials quantity variance Total direct material variance Medium speed bump 13 $ 2.00 12 $ 2.80 $ 4,800 U $ 1,000 F C $ 3,800 0 500 $ 2.00 $ $ 2.50 18 2.80 3,240 U I 1,740 U 600 Direct materials information Standard pounds per unit Standard price per pound Actual quantity purchased and used per unit .. Actual price paid for material per pound .... Direct materials price variance Direct materials quantity variance .......... Total direct material variance Number of units produced $ 2.50 18 $ 2.80 $ 3,240 V $ $ 2.80 $ 4,800 U $ 1,000 F Number of units produced $ 1,740 U 600 500 Print Done

Answer 1

Given,	SR/pound = $ 2.50
	No. of units produced = 600 units
	Actual quantity purchased and used per unit = 18
	Actual price per material pound = $ 2.80
	Direct material price variance = 3,240 (U)
	Total Direct material variance = 1,740 (U)
	Material Quantity varaince = Total Direct material variance - Direct material price variance
			= -1,740 + 3,240
			= 1,500 (F)
	SQ * SR - AQ *SR = 1,500
	SQ *2.5 = (600*18)*2.5 = 1,500
	SQ = 11,400
	Standard pounds / unit = 11,400/600 =19
	Material Quantity variance = 1,500 (F)
Note :
SQ	Standard quantity
SR	Standard rate
AQ	Actual Quantity