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Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.51 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance Materials quantity variance LA LA

Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.51 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance Materials quantity variance LA LA

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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H1.

Answer b please 

 

The standard cost of product B manufactured by Splish Company includes 3 units of direct materials at $5.35 per unit. During June, the company purchases 29,000 units of direct materials at a cost of $5.03 per unit and uses 29,000 units of direct materials to produce 9,500 units of product B. (a) Your answer is correct. Calculate the materials variance, and the price and quantity variances. Materials variance Materials price variance $ $ Materials quantity variance $ 6,605 i 9,280 i 2,675 i Favourable Favourable Unfavourable
Transcribed Image Text:The standard cost of product B manufactured by Splish Company includes 3 units of direct materials at $5.35 per unit. During June, the company purchases 29,000 units of direct materials at a cost of $5.03 per unit and uses 29,000 units of direct materials to produce 9,500 units of product B. (a) Your answer is correct. Calculate the materials variance, and the price and quantity variances. Materials variance Materials price variance $ $ Materials quantity variance $ 6,605 i 9,280 i 2,675 i Favourable Favourable Unfavourable
(b) Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.51 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance $ $ Materials quantity variance $ LA
Transcribed Image Text:(b) Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.51 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance $ $ Materials quantity variance $ LA
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