Question

please be as clear and as simple as possible. I am trying to understand it. show me the steps, not only the answers. thank you in advance.

525.5 Compute materials price and quantity variance The standard cost of Product B manufactured by MIT Company includes three units of direct materials at $5.00 per unit. During June, 29,000 units of direct materials are purchased at a cost of $4.70 per unit, and 29,000 units of direct materials are used to produce 9,500 units of Product B. Instructions (a) Compute the total materials variance and the price and quantity variances. (b) Repeat (a), assuming the purchase price is $5.15 and the quantity purchased and used is 28,000 units NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) Total Materials Variance: Materials price variance: minus ? ? Materials quantity variance: AQX SP ( ? ? ( ) ) minus minus sa ? X x SP ? ) ) (b) Total Materials Variance: AO minus sQX (1 Value SP Value Value Value minus Value minus X Materials price variance: AQ X AP Value x Value minus ? ) minus ) minus Value ( d AQ Value Value Materials quantity variance: AQ SQ Value X x ) minus ) minus d Value SP Value Value x Value minus ?

Answer 1

a
Given in question
	AQ	29000
	AP	4.7
	SQ	28500
	SP	5
Filling above AQ, AP, SQ, SP values in template
	Total Materials Variance
	29000	4.7	minus	28500	5
	136300	minus	142500	=	-6200
	MPV
	29000	4.7		29000	5
	136300	minus	145000	=	-8700
	MQV
	29000	5		28500	5
	145000	minus	142500	=	2500

b
Given in question
	AQ	28000
	AP	5.15
	SQ	28500
	SP	5
Filling above AQ, AP, SQ, SP values in template
	Total Materials Variance
	28000	5.15	minus	28500	5
	144200	minus	142500	=	1700
	MPV
	28000	5.15		28000	5
	144200	minus	140000	=	4200
	MQV
	28000	5		28500	5
	140000	minus	142500	=	-2500