Bellevue Manufacturing Ltd. produces a product that uses the following direct material standards: • Standard Quantity: 2.8 kilos per unit Standard Price: $5.50 per kilo In March, the company produced 7,500 units using 19,500 kilos of material. During the month, the company purchased 20,000 kilos of direct material at a total cost of $110,000. The direct materials purchases variance is computed when the materials are purchased. Calculate the materials price variance for March.

Bellevue Manufacturing Ltd. produces a product that uses the following direct material standards: • Standard Quantity: 2.8 kilos per unit Standard Price: $5.50 per kilo In March, the company produced 7,500 units using 19,500 kilos of material. During the month, the company purchased 20,000 kilos of direct material at a total cost of $110,000. The direct materials purchases variance is computed when the materials are purchased. Calculate the materials price variance for March.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 20E: Jameson Company produces paper towels. The company has established the following direct materials...

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April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $300,000, and it takes S feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $6,000. A. What is April Industries standard price for one unit of material? B. What was the total number of units of material used to produce the August output? C. What was the direct materials price variance for August?
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