? Chapter 9 hw × e Accounting question! Chng + ?? Oemo mnoducat oncomhmtpr Perfe

Question

? Chapter 9 hw × e Accounting question! Chng + ?? Oemo mnoducat oncomhmtpr Perfect Pet Collar Coripany makes custorm leather pet collars. The company expecls each collar to require 2.05 fect of leather and predicts leather will cost $3.60 per foot Suppose Perfect Pet made 55 collars during February. For these 55 coliars, the company actually averaged 2.20 teet of leather per collar and paid $3.20 per toot. Required: 1. Calculate the standard direct materlais cost per unit. (Round your answer to 2 decimal places.) per Colla 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. Variance 6. Calculate he direct materials price and quantity variances. Round your intermediate calculations and final answers to 2 decmal places. Indicate the effect of each va unfavorable.) ance by selecting "F for a orable. ?? for O Type here to search 641 PM 4/24/2018

Explanation / Answer

1 Material required per collar 2.05 Cost per feet 3.6 Standard direct material cost per unit 7.38 2 Price variance will be Favorable 3 Quantity variance will be unfavorable 6 Actual rate 3.2 Per feet Direct material price variance = (Standard rate - Actual rate) * Actual quantity Direct material price variance = (3.6-3.2) *55*2.2 Direct material price variance = 48.4 Favorable Standard Material for actual production 55*2.05 113 Feet Direct material quantity variance=   ( Actual material - Standard material for acual production) *Standard rate Direct material quantity variance=   (121-113)* 3.6 28.8 UnFavorable

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