The company provides the following information: Material price variance $800.00 F Material spending variance $250.00 F Budgeted material per unit 1.50 feet Budgeted material price $6.00 per foot Actual units produced 120 Budgeted units to be produced 100 Determine the actual number of feet of material used. Round to nearest whole foot, if needed.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The company provides the following information:
| Material price variance | $800.00 | F |
| Material spending variance | $250.00 | F |
| Budgeted material per unit | 1.50 | feet |
| Budgeted material price | $6.00 | per foot |
| Actual units produced | 120 | |
| Budgeted units to be produced | 100 |
Determine the actual number of feet of material used.
Round to nearest whole foot, if needed.
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