The Big Blackbird Company manufactures decorative scarecrows that have a standard cost of $3.50 per pound for direct materials used in the manufacturing process. During September, 30,000 pounds of materials were purchased for $4.00 per pound, and 24,000 pounds were actually used in making 5,000 scarecrows. There were no beginning inventories. the Determine the materials price variance assuming that materials costs are responsibility of the materials purchasing manager. b. Determine the materials price variance assuming that materials costs are the responsibility of the production manager. c. Determine the material quantity variance if the standard materials for each scarecrow are 6 pounds.
The Big Blackbird Company manufactures decorative scarecrows that have a standard cost of $3.50 per pound for direct materials used in the manufacturing process. During September, 30,000 pounds of materials were purchased for $4.00 per pound, and 24,000 pounds were actually used in making 5,000 scarecrows. There were no beginning inventories. the Determine the materials price variance assuming that materials costs are responsibility of the materials purchasing manager. b. Determine the materials price variance assuming that materials costs are the responsibility of the production manager. c. Determine the material quantity variance if the standard materials for each scarecrow are 6 pounds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Big Blackbird Company manufactures
decorative scarecrows that have a standard cost
of $3.50 per pound for direct materials used in
the manufacturing process. During September,
30,000 pounds of materials were purchased for
$4.00 per pound, and 24,000 pounds were
actually used in making 5,000 scarecrows. There
were no beginning inventories.
the
Determine the materials price variance
assuming that materials costs are
responsibility of the materials purchasing
manager.
b. Determine the materials price variance
assuming that materials costs are the
responsibility of the production manager.
c. Determine the material quantity variance if the
standard materials for each scarecrow are 6
pounds.
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