Exercise 11-5 The standard cost of Product B manufactured by Pharrell Company in
ID: 2530613 • Letter: E
Question
Exercise 11-5 The standard cost of Product B manufactured by Pharrell Company includes 2.6 units of direct materials at $6.0 per unit. During June, 26,700 units of direct materials are purchased at a cost of $5.90 per unit, and 26,700 units of direct materials are used to produce 10,100 units of Product B. Compute the total materials variance and the price and quantity variances Total materials variance Materials price variance Favorable Unfavorable Neither favorable nor unfavorable Materials quantity variance Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.05 and the quantity purchased and used is 26,500 units. Total materials variance Materials price variance Materials quantity variance LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE Question Attempts: 0 of 3 usedSAVE FOR LATER SUBMIT ANSWERExplanation / Answer
Total materials variance = (actual quantity * actual price) - (standard quantity * standard price)
Materials price variance = (actual price - standard price) * actual quantity
Materials quantity variance = (actual quantity - standard quantity) * standard price
(a)
(b)
Total materials variance (26,700*5.9) - (10,100*2.6*6) = 30 Favourable Materials price variance (5.9 - 6) * 26,700 = 2,670 Favourable Materials quantity variance [26,700 - (10,100*2.6)] * 6 = 2,640 UnfavourableRelated Questions
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