< eBook Direct Materials Variances Show Me How Print Item 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 Favorable 475 Unfavorable Favorable
< eBook Direct Materials Variances Show Me How Print Item 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 Favorable 475 Unfavorable Favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Direct Materials Variances
Show Me How
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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
Favorable
475
Unfavorable
Favorable
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