Direct Materials Variances Kearny Inc. produces tablet computers. The company uses crystal LCD displays for its products. Each tablet uses one display. The company produced 15,000 tablets during February. However, due to LCD defects, the company actually used 15,250 LCD displays during February. Each display has a standard cost of $1.90. The 15,250 LCD displays were purchased for February production at a cost of $27,450. Determine the price variance, quantity variance, and total direct materials cost variance for February. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance
Direct Materials Variances Kearny Inc. produces tablet computers. The company uses crystal LCD displays for its products. Each tablet uses one display. The company produced 15,000 tablets during February. However, due to LCD defects, the company actually used 15,250 LCD displays during February. Each display has a standard cost of $1.90. The 15,250 LCD displays were purchased for February production at a cost of $27,450. Determine the price variance, quantity variance, and total direct materials cost variance for February. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Direct Materials Variances
Kearny Inc. produces tablet computers. The company uses crystal LCD displays for its products. Each tablet uses one display. The company produced 15,000 tablets during
February. However, due to LCD defects, the company actually used 15,250 LCD displays during February. Each display has a standard cost of $1.90. The 15,250 LCD displays
were purchased for February production at a cost of $27,450.
Determine the price variance, quantity variance, and total direct materials cost variance for February.
Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Price variance
Quantity variance
Total direct materials cost variance
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