Answer:
Material Price Variance= $301 Unfavorable
Material Quantity Variance= $283 Favorable
Total direct materials variance for oil for June $ 18 Unfavorable
Material Price Variance= $305 Unfavorable at the time of purchase
Explanation:
Guillermo's Oil and Lube Company
Actual number of oil changes performed: 980
Actual number of quarts of oil used: 6,020 quarts
Actual price paid per quart of oil: $5.10
Standard price per quart of oil: $5.05
Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)
Material Price Variance= ($5.10 *6,020)-($5.05 *6,020)= $ 30702- $ 30401
Material Price Variance= $301 Unfavorable
Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)
Material Quantity Variance=($5.05 *6,020)-($5.05 *6.2 * 980)=($5.05 *6,020)-($5.05 *6076)
Material Quantity Variance=$ 30401-30683.8= 282.8
Material Quantity Variance= $283 Favorable
Total direct materials variance for oil for June=$301 Unfavorable- $283 Favorable= $ 18 Unfavorable
3. Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)
Material Price Variance= ($5.10 *6,100)-($5.05 *6,100)= $ 31110- $ 30805
Material Price Variance= $305 Unfavorable
