The following materials standards have been established for a particular product: Standard quantity per unit of output 5.2 grams Standard price $10.50 per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased 4,100 grams $41,820 Actual materials used in production 3,400 grams Actual output 600 units The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month?

The following materials standards have been established for a particular product: Standard quantity per unit of output 5.2 grams Standard price $10.50 per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased 4,100 grams $41,820 Actual materials used in production 3,400 grams Actual output 600 units The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month?

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 7E: H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup...

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