Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $14.60. During the month, 8,000 chairs were manufactured, using 54,900 yards at a cost of $13.72 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance $ $ 48,312 16,060 64,372 Favorable Favorable Favorable
Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $14.60. During the month, 8,000 chairs were manufactured, using 54,900 yards at a cost of $13.72 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance $ $ 48,312 16,060 64,372 Favorable Favorable Favorable
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4E: The following data relate to the direct materials cost for the production of 50,000 automobile...
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