Benson Co. purchased land and paid the full purchase price in cash. The journal entry necessary to record this event includes a:
1 answer:
You might be interested in
Answer:
Total Material Variance = $1,636 Favorable
Material Price Variance = $2,920 Unfavorable
Material Quantity Variance = $4,556 Favorable
Explanation:
Total Material Variance = Standard Cost - Actual Cost
Standard Cost = Standard units Standard Price
Standard Units = 10,300 2.9 = 29,870 units
Standard cost = 29,870 $6.8 = $203,116
Actual Cost = 29,200 $6.90 = $201,480
Total Material Variance = $203,116 - $201,480 = $1,636 Favorable
Material Price Variance = (Standard Rate - Actual Rate) Actual Units
= ($6.8 - $6.9) 29,200 = - $2,920 Unfavorable
Material Quantity Variance = ( Standard Units - Actual Units) Standard Price
= (29,870 - 29,200) $6.8
= $4,556 Favorable
Final Answer
Total Material Variance = $1,636 Favorable
Material Price Variance = $2,920 Unfavorable
Material Quantity Variance = $4,556 Favorable