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. Line Item Description Amount Variance Price variance $fill in the blank 1 Quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5
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. Line Item Description Amount Variance Price variance $fill in the blank 1 Quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
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.
| Line Item Description | Amount | Variance |
|---|---|---|
| Price variance | $fill in the blank 1 |
|
| Quantity variance | $fill in the blank 3 |
|
| Total direct materials cost variance | $fill in the blank 5 |
|
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