I need help with cost accounting. Thanks. Oklahoma Pneumatic uses a JIT system. The following standards are related to materials A and B, which are used to make one unit of the company's final product:Annual Material Standards3 pounds of Material A × $2.50$7.504 pounds of Material B × $3.4013.60$21.10Current Material Standards2 pounds of Material A × $2.50$5.005 pounds of Material B x $3.4017.00$22.00Current material standards differ from the original because of an engineering change made near the end of June. During July, the company produced 7,200 units of itsfinal product and used 26,400 pounds of Material A and 24,000 pounds of Material B. All material is acquired at the standard cost per pound.Calculate the material quantity variance and the engineering change order (ECO) material variance.Note: Do not use a negative sign with your answer.Material quantity variance $ 0ECO material variance $ 0

Material quantity variance is a category of variance that compares actual quantity and standard…

Answered: Calculate the material quantity…

Business

Accounting

Calculate the material quantity variance and the engineering change order (ECO) material variance.

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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Question

I need help with cost accounting. Thanks.

Oklahoma Pneumatic uses a JIT system. The following standards are related to materials A and B, which are used to make one unit of the company's final product:
Annual Material Standards
3 pounds of Material A × $2.50
$7.50
4 pounds of Material B × $3.40
13.60
$21.10
Current Material Standards
2 pounds of Material A × $2.50
$5.00
5 pounds of Material B x $3.40
17.00
$22.00
Current material standards differ from the original because of an engineering change made near the end of June. During July, the company produced 7,200 units of its
final product and used 26,400 pounds of Material A and 24,000 pounds of Material B. All material is acquired at the standard cost per pound.
Calculate the material quantity variance and the engineering change order (ECO) material variance.
Note: Do not use a negative sign with your answer.
Material quantity variance $ 0
ECO material variance $ 0

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