Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.25 per pound. 16,500 units used 36,900 pounds, which were purchased at $3.45 per pound. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.25 per pound. 16,500 units used 36,900 pounds, which were purchased at $3.45 per pound. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bellingham Company produces a product
that requires 2.3 standard pounds per unit.
The standard price is $3.25 per pound.
16,500 units used 36,900 pounds, which
were purchased at $3.45 per pound.
This information has been collected in the
Microsoft Excel Online file. Open the
spreadsheet, perform the required analysis,
and input your answers in the questions
below.
What is the direct materials (a) price
variance, (b) quantity variance, and (c) cost
variance? Round your answers to the
nearest dollar. Enter a favorable variance as
a negative number using a minus sign and
an unfavorable variance as a positive
number.
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