Answer:
1. Total flexible budget materials variance $189 Favourable
2. Materials price variance $513 Favorable
3. Materials usage variance $324 Unfavorable
4. Total Variance $189 Favorable
Explanation:
1. Calculation to Determine the total flexible budget materials variance
Using this formula
Total flexible budget materials variance=Standard cost - Actual cost
Let plug in the formula
Total flexible budget materials variance=($ 8.19*900)-($ 7.98*900)
Total flexible budget materials variance=$7,371-$7,182
Total flexible budget materials variance=$189 Favourable
Therefore Total flexible budget materials variance is $189 Favorable
2. Calculation to Determine the materials price variance
Using this formula
Materials price variance=(Standard price -Actual price)*Actual quatity
Let plug in the formula
Materials price variance=($ 0.90 - $ 0.84)*(900*9.50)
Materials price variance=$0.06*8,550
Materials price variance=$513 Favorable
Therefore Materials price variance is $513 Favorable
3. Calculation to Determine the materials usage variance
Using this formula
Materials usage variance=(Standard quatity-Actual quantity)*Standard price
Let plug in the formula
Materials usage variance=[(900*9.10)-8,550]*$ $0.90
Materials usage variance=(8,190-8,550)*$0.90
Materials usage variance=-360*$0.90
Materials usage variance=$324 Unfavorable
Therefore Materials usage variance is $324 Unfavorable
4. Calculation to Confirm the accuracy of Requirements a, b, and c
Materials price variance is $513 Favorable
Less Materials usage variance $324 Unfavorable
Total Variance $189 Favorable
Therefore the accuracy of Requirements a, b, and c is $189 Favorable
