6. If the materials price variance is $3,600 F and the materials quantity and la
ID: 2456923 • Letter: 6
Question
6. If the materials price variance is $3,600 F and the materials quantity and labor variances are each $2,800 U, what is the total materials variance? (Answer: $800 favorable)
7. Carley Company has a materials price standard of $2.10 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Carley Company's materials price variance is: (Answer: $600 unfavorable)
8. Carley Company has a materials price standard of $2.10 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Carley Company's materials quantity variance is: (Answer: $1,260 unfavorable)
Explanation / Answer
Material price variance = 3600 F, material quantity variance = 2800 U
Total material variance = 3600 - 2800
= 800 F
7)
(Standar price - actual price) * actual quantity
= (2.1 - 2.2) * 6000
= -0.1 * 6000
= 600 U
8)
(standard quantity - actual quantity) * standard price
= (5400 - 6000) * 2.1
= -600 * 2.1
= $1260 U
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