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QS 21-8 (Static) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ= Standard Quantity AP Actual Price SP Standard Price $ 8 per unit 300,000 pounds 60,000 units $540,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x +

QS 21-8 (Static) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ= Standard Quantity AP Actual Price SP Standard Price $ 8 per unit 300,000 pounds 60,000 units $540,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x +

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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QS 21-8 (Static) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ= Standard Quantity AP Actual Price SP Standard Price $ 8 per unit 300,000 pounds 60,000 units $540,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x +
Transcribed Image Text:QS 21-8 (Static) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ= Standard Quantity AP Actual Price SP Standard Price $ 8 per unit 300,000 pounds 60,000 units $540,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x +
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