Rancho Cucamonga Inc. established the following direct materials and direct labor standards for its product. Item Price Quantity Total Direct materials $2 3 lbs $6 Direct labor $6 2 hrs $12 The firm expected to make, and made, ten (10) units of finished goods inventory. Use the table above to complete the following direct materials variance table and to answer the following questions: Complete the following direct materials variance table. The left column reports the actual cost data and has been completed for you. Direct Materials Variances Actual Price x Actual Quantity Standard Price x Actual Quantity $3lb x (4lbs x 10 units) = $120 $ _x (_ x _) = $_ Report the variance and indicate each variance as either favorable "F" or unfavorable "U" (for example, 30U). Do not include dollar signs or spaces. Direct materials quantity variance $___ Direct materials price variance $ ___ Total direct materials variance $___
Rancho Cucamonga Inc. established the following direct materials and direct labor standards for its product.
|
Item |
Price |
Quantity |
Total |
|
Direct materials |
$2 |
3 lbs |
$6 |
|
Direct labor |
$6 |
2 hrs |
$12 |
The firm expected to make, and made, ten (10) units of finished goods inventory. Use the table above to complete the following direct materials variance table and to answer the following questions:
Complete the following direct materials variance table. The left column reports the actual cost data and has been completed for you.
Direct Materials Variances
|
Actual Price x Actual Quantity |
Standard Price x Actual Quantity |
|
$3lb x (4lbs x 10 units) = $120
|
$ _x (_ x _) = $_ |
Report the variance and indicate each variance as either favorable "F" or unfavorable "U" (for example, 30U). Do not include dollar signs or spaces.
Direct materials quantity variance $___
Direct materials price variance $ ___
Total direct materials variance $___
Step by step
Solved in 2 steps with 1 images
