Question

Question 7 Partially correct Mark 0.38 out of 1.00 P Flag questi Materials Variances Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $17.00. During July, the Santa Clara location produced 5.200 pairs of sunglasses and used 9.900 ounces of materials The cost of the materials during July was 517.25 per ounce, and there were no beginning or ending inventories Required a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses. $0 b. Determine the actual materials cost incurred for the completion of the 5,200 pairs of glasses and compute the total materials variance. $0 X actual materials cost x Fo total materials variance c. How much of the total variance was related to the price paid to purchase the materials? $ 6 X U d. How much of the difference between the answers to requirements (a) and (b) was related to the quantity of materials used? X F Check

Answer 1

* Assume that @ flexible budget cost: 136800 (6) Actual material cost incurred Total materice variance $170975 6025 TOT Variance zelored to price $ 2013 (d) Difcbet (9) ECO) Delated to quan of matused § 8 SOO EXPlanation: Pes pals (a flexible budget cost 5200 pairX 2ounce mat 10400 ounce = ) 10400 ounce x S 17 pes ounce s 176800 (6) ACHCL cost 5200 pair: 9900 ounce X $ 17.25 Pesounce 15170775... (6) - Total mat variances 176800 - s 170775 $ 6025 favorable (c) variance zelated to price: AOC AP-SP 9900 C $17.25-11) 15 245 U d) quantity related Variana SP CAO 50) = FIC 9900 - 10u00 - 18500 FT