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Direct Materials Variances Bellingham Company produces a product that requires seven standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 43,000 pounds, which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ 18,060 X Favorable b. Direct materials quantity variance $ 106,050 X Unfavorable c. Direct materials cost variance $ 124,110 X Favorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost variance is the difference between the actual and standard total cost.

Direct Materials Variances Bellingham Company produces a product that requires seven standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 43,000 pounds, which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ 18,060 X Favorable b. Direct materials quantity variance $ 106,050 X Unfavorable c. Direct materials cost variance $ 124,110 X Favorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost variance is the difference between the actual and standard total cost.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Direct Materials Variances Bellingham Company produces a product that requires seven standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 43,000 pounds, which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ 18,060 X Favorable b. Direct materials quantity variance $ 106,050 X Unfavorable c. Direct materials cost variance $ 124,110 X Favorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost variance is the difference between the actual and standard total cost.
Transcribed Image Text:Direct Materials Variances Bellingham Company produces a product that requires seven standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 43,000 pounds, which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ 18,060 X Favorable b. Direct materials quantity variance $ 106,050 X Unfavorable c. Direct materials cost variance $ 124,110 X Favorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost variance is the difference between the actual and standard total cost.
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