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brilliants [131]
3 years ago
11

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.4 pound

s Standard price $13.20 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 4,800 pounds Actual cost of materials purchased $62,880 Actual materials used in production 4,800 pounds Actual output 700 units The direct materials purchases variance is computed when the materials are purchased. 1) What is the materials price variance for the month?A) $6,600 U.B) $16,104 U.C) $15,982 U.D) $6,550 U 2) What is the materials price variance for the month? A) $480 F.B) $430 U.C) $430 F.D) $480 U.
Business
1 answer:
irina [24]3 years ago
4 0

Answer:

Results are below.

Explanation:

<u>To calculate the direct material price variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (13.2 - 13.1)*4,800

Direct material price variance= $480 favorable

Actual price= 62,880 / 4,800= 13.1

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (4.4*700 - 4,800)*13.2

Direct material quantity variance= $22,704 unfavorable

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