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A company's product requires 5 pounds of direct materials per unit at a standard cost of $16 per pound. During the period, the company made 8,110 units, using 41,940 pounds of direct materials at an actual cost of $14 per pound. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials variance. Indicate whether each variance is favorable or unfavorable. AQ-Actual Quantity SQ Standard Quantity AP Actual Price SP- Standard Price Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. AQ 41,940 Actual Cost $ 671,040 AP $ 16.00 Direct materials price variance Direct materials quantity variance Total direct materials variance $ 0 AQ 0 SP S 0 SQ 4 Standard Cost M SP

A company's product requires 5 pounds of direct materials per unit at a standard cost of $16 per pound. During the period, the company made 8,110 units, using 41,940 pounds of direct materials at an actual cost of $14 per pound. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials variance. Indicate whether each variance is favorable or unfavorable. AQ-Actual Quantity SQ Standard Quantity AP Actual Price SP- Standard Price Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. AQ 41,940 Actual Cost $ 671,040 AP $ 16.00 Direct materials price variance Direct materials quantity variance Total direct materials variance $ 0 AQ 0 SP S 0 SQ 4 Standard Cost M SP

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company's product requires 5 pounds of direct materials per unit at a standard cost of $16 per pound. During the period, the company made 8,110 units, using 41,940 pounds of direct materials at an actual cost of $14 per pound. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials variance. Indicate whether each variance is favorable or unfavorable. AQ - Actual Quantity SQ-Standard Quantity AP = Actual Price SP- Standard Price Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. AQ 41,940 Actual Cost $ 671,040 $ Direct materials price variance Direct materials quantity variance Total direct materials variance AP 16.00 $ 0 $ AQ 0 0 M SP $ 0 SQ 4 Standard Cost SP
Transcribed Image Text:A company's product requires 5 pounds of direct materials per unit at a standard cost of $16 per pound. During the period, the company made 8,110 units, using 41,940 pounds of direct materials at an actual cost of $14 per pound. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials variance. Indicate whether each variance is favorable or unfavorable. AQ - Actual Quantity SQ-Standard Quantity AP = Actual Price SP- Standard Price Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. AQ 41,940 Actual Cost $ 671,040 $ Direct materials price variance Direct materials quantity variance Total direct materials variance AP 16.00 $ 0 $ AQ 0 0 M SP $ 0 SQ 4 Standard Cost SP
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