In reviewing activity for July, the controller of Mathis, Inc, collected the fol

Question

In reviewing activity for July, the controller of Mathis, Inc, collected the following data concerning direct material:s Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used S 104,600 units $1,646,000 $1,562,000 14.4 $ 1.413,950 Required: Compute the direct materials cost variances. (Indicate the effect of each variance by selecting "F" for favorab Direct Materials Price variance Efficiency variance $ Cost variances 92 290F Type here to search 0

Explanation / Answer

Std cost per unit produced: $14.4 Std cost of material purchased 1562000.00 Std cost of actual amount of material used 1413950.00 Actual cost of material purchased 1,646,000 Std cost of std material used (104600*14.40) 1,506,240 Material Price variance: Std price of actual material purchased- Actual cost of material purchased 1562000-1646000 = 84000 Unfavorable Material Quantity Variance: Std cost of Std material used-Std cost of actual material used 1506240-1413950= 92290 Fav Material cost Variance: Material price variance+Material Quantity variance 84000 U + 92290 F = 8290 F

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.