Cycle
USA
is
in
the
business
of
making
innertubes
for
bicycles.
They
manufacture
both
large
and
small
innertubes.
Both
of
the
tubes
use
the
same
material
but
require
different
amounts
of
material.
The
material
usage
is
as
follows:
Large
Small
1.25
feet
at
$0.25
Rubber
3
feet
at
$0.25
per
foot
ectat
$
per
foot
Connector
1at
$0.03
1at
$0.03
On
June
1,
Cycle
USA purchased
25,000
feet
of
rubber
for
$6,875.
During
the
month
of
June,
Cycle
USA
used
14,500
feet
of
rubber
to
make
3,000
large
tubes
and
4,000
small
tubes.
Calculate
the
direct
materials
price
variance
*
Type
your
response
with
no
commas
and
2
decimal
places
625.(%
A.
$6,875/25,000
=
$0.275
14,500
x
(0.275
-
$0.25)
=
$362.50
(unfavorable)
direct
materials
price
variance
One
possible
correct
answer
is:
362.50
Calculate
the
direct
materials
quantity
variance
*
Type
your
response
with
no
commas
and
2
decimal
places
o
One
possible
correct
answer
is:
125.00
Calculate
the
total
direct
materials
cost
variance
*
Type
your
response
with
no
commas
and
2
decimal
places
750.)
x
$362.50
U
+
$125
U
=
$487.50
unfavorable
direct
material
cost
variance
One
possible
correct
answer
is:
487.50
If
Cycle
USA
bought
10,000
connectors
costing
$310,
what
would
the
direct
materials
price
variance
be
for
the
connectors?
*
Type
your
response
with
no
commas
and
2
decimal
places
oade
One
possible
correct
answer
is:
7.00
How
much
did
they
pay
per
foot
for
the
rubber
if
there
was
an
unfavorable
direct
materials
price
variance
of
$125?
*
Type
your
response
with
no
commas
and
2
decimal
places
(##.##)
0.26
v
