Use the information provided to answer the questions. Actual price paid per pound of material $13.50 Total standard pounds for units produced this period 12,400 Pounds of material used 13,350 Direct materials price variance favorable $3,337.50 All material purchased was used in production. Enter all amounts as positive numbers. A. What is the standard price for materials? Standard price paid $fill in the blank 1 B. What is the direct materials quantity variance? Direct materials quantity variance $fill in the blank 2 C. What is the total direct materials cost variance? Total direct materials cost variance $fill in the blank 4 D. If the direct materials price variance was unfavorable, what would be the standard price? Standard price $fill in the blank 6
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.
Use the information provided to answer the questions.
| Actual price paid per pound of material | $13.50 |
| Total standard pounds for units produced this period | 12,400 |
| Pounds of material used | 13,350 |
| Direct materials price variance favorable | $3,337.50 |
All material purchased was used in production.
Enter all amounts as positive numbers.
A. What is the standard price for materials?
Standard price paid $fill in the blank 1
B. What is the direct materials quantity variance?
Direct materials quantity variance $fill in the blank 2
C. What is the total direct materials cost variance?
Total direct materials cost variance $fill in the blank 4
D. If the direct materials price variance was unfavorable, what would be the standard price?
Standard price $fill in the blank 6
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