Exercise 23-15 Urban Corporation prepared the following variance report. Fill in
ID: 2512612 • Letter: E
Question
Exercise 23-15 Urban Corporation prepared the following variance report. Fill in the missing amounts or letters in the report. (Round actual and standard price answers to 2 decimal places, e.g. 2.75.) URBAN CORPORATION Variance Report-Purchasing Department For Week Ended January 9, 2017 Type of Quantity Purchased Actual Price Standard Price Price Variance Explanation Materials Rogue11 Storm17 Beast29 lbs $5.20 $5.05 $3,975 Price increase 6,600 oz.$ $3.27 $528 Unfavorable Rush order 24,100 units $0.35 $1,205 Favorable Bought larger quantity Click if you would like to Show Work for this question: ShoExplanation / Answer
Rouge11:
Actual Price = $5.20
Standard Price = $5.05
Actual Price > Standard Price. So, Price Variance is Unfavorable
Price Variance = Quantity Purchased * (Actual Price - Standard Price)
$3,975 = Quantity Purchased * ($5.20 - $5.05)
$3,975 = Quantity Purchased * $0.15
Quantity Purchased = 26,500 lbs
Storm17:
Quantity Purchased = 6,600 oz.
Standard Price = $5.05
Price Variance = Quantity Purchased * (Actual Price - Standard Price)
$528 = 6,600 * (Actual Price - $3.27)
$0.08 = Actual Price - $3.27
Actual Price = $3.35
Beast29:
Quantity Purchased = 24,100 units
Actual Price = $0.35
Price Variance = Quantity Purchased * (Actual Price - Standard Price)
-$1,205 = 24,100 * ($0.35 - Standard Price)
-$0.05 = $0.35 - Standard Price
Standard Price = $0.40
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