1. What if the actual number of quarts of oil purchased in June had been 6880 quarts, and the materials price variance was calculated at the time of purchase? If required, round your answers to the nearest cent. What would be the materials price variance (MPV)? What would be the materials usage variance (MUV)?
Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30 minutes and 6.4 quarts of oil are used. In June, Guillermo's Oil and Lube had 1,000 oil changes.
Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June:
Actual number of oil changes performed: 1,000
Actual number of quarts of oil used: 6,960 quarts
Actual price paid per quart of oil: $5.30
Standard price per quart of oil: $5.25
1. What if the actual number of quarts of oil purchased in June had been 6880 quarts, and the materials price variance was calculated at the time of purchase? If required, round your answers to the nearest cent.
What would be the materials price variance (MPV)?
What would be the materials usage variance (MUV)?
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