Hello, I am working on the homework below, but I am unsure of how to solve it. P

Question

Hello, I am working on the homework below, but I am unsure of how to solve it. Please help me in solving the homework below.

1. The standard cost of Product B manufactured by Pharrell Company includes 3.9 units of direct materials at $5.6 per unit. During June, 26,700 units of direct materials are purchased at a cost of $5.45 per unit, and 26,700 units of direct materials are used to produce 6,800 units of Product B.

2. Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.

Total materials variance $ Neither favorable nor unfavorableFavorableUnfavorable Materials price variance $ FavorableUnfavorableNeither favorable nor unfavorable Materials quantity variance $ UnfavorableFavorableNeither favorable nor unfavorable

Explanation / Answer

1)a) Total material variance = (6800*3.9*5.6)-(26700*5.45) = 2997 Favorable

Material price variance = (5.6-5.45)*26700 = 4005 Favorable

Material quantity variance = (6800*3.9-26700)*5.6 = 1008 Unfavorable

b) Total material variance = (6800*3.9*5.6)-(26800*5.65) = 2908 Unfavorable

Material price variance = (5.6-5.65)*26800 = 1340 Unfavorable

Material quantity variance = (6800*3.9-26800)*5.6 = 1568 Unfavorable

Note : All question are independent question so please post each question individually for answer

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