Using the following product information, calculate the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used Direct materials standard (4 pounds @ $25 per pound) AQ Actual Quantity SQ = Standard Quantity AP Actual Price SP Standard Price Actual Cost X Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. X X 19,610 pounds 4,680 units X $ 529,470 $ 100 per unit Standard Cost X X
Using the following product information, calculate the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used Direct materials standard (4 pounds @ $25 per pound) AQ Actual Quantity SQ = Standard Quantity AP Actual Price SP Standard Price Actual Cost X Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. X X 19,610 pounds 4,680 units X $ 529,470 $ 100 per unit Standard Cost X X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Using the following product information, calculate the direct materials price variance and the direct materials quantity variance.
Indicate whether each variance is favorable or unfavorable.
Actual direct materials used (AQ)
Actual units produced
Actual cost of direct materials used
Direct materials standard (4 pounds @ $25 per pound)
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
Actual Cost
X
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
X
X
19,610 pounds
4,680 units
X
$ 529,470
$ 100 per unit
Standard Cost
X
X
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