Answer:
A)1192 A
B) 192 A
C) 1000 A
Explanation:
The Question is to Compute Simba Company's Total, Price, and Quantity materials Variances
1) Computation of material Cost Variance
= The Standard Cost - The Actual Cost of the material
= 1,500 units x 2 pounds = 3000 pounds
Standard Cost = 3,000 pounds x $5 = $15,000
Therefore material variance = $15,000 - $16,192 = 1192A
2) The material Rate Variance or the Price Variance
= (Standard Rate - Actual Rate) Actual Quantity
= Actual Rae = $16,192 / 3200 = $5.06
Material Rate Variance = (5- 5.06) x 3,200
= 192 A
3) The material Usage Variance or Quantity variance
= (The Standard Quantity - Actual Quantity) Standard Rate
Standard Quantity = 1,500 Units x 2 Pounds = 3000 pounds
Material Usage Variance = (3,000-3,200) 5
= 1000 A
