i cant figure it out 7 Required information (The following information applies t
ID: 2532958 • Letter: I
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i cant figure it out
7 Required information (The following information applies to the questions displayed below) A manufactured product has the following information for June. Pert 2 of 3 Standard Actual Direct materials Direct labor Overhead (7 lbs. $7 per lb.)57, 300 lbs. 7.10 per ib. (3 hrs. $16 per h (3 hrs. e $1l per hr. $273,200 24,000 hrs. $16.50 per hr. 00:26:02 Units manufactured 9, 100 AQ Actual Quantity SQ = Standard Quantity AP Actual Price SP = Standard Price Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable Actual Cost Standard Cost AQ AP SP sQ SP 57.300 Mc Graw Preyof Next >Explanation / Answer
Standard Quantity = 8,100 Units * 7 Lbs
= 56,700 lbs
The correct answer is :
Direct Materials Price Variance = ( Actual Quantity * Actual Price ) - ( Actual Quantity * Standard Price)
= $ 406,830 - $ 401,100
= $ 5,730
Since Actual Price is greater than the Standard Price, variance is Unfavorable.
Direct Materials Quantity Variance = ( Actual Quantity * Standard Price ) - ( Standard Quantity * Standard Price)
= $ 401,100 - $ 396,900
= $ 4,200 Unfavorable
Since Actual Quantity is greater than the Standard Quantity, variance is Unfavorable
Total Direct Materials Variance = Direct Materials Price Variance +Direct Materials Quantity Variance
= $ 5,730 + $ 4,200
= $ 9,930 Unfavorable
Hence the correct answer is :
Actual Cost Standard Cost AQ * AP AQ * SP SQ * SP 57,300 * 7.1 57,300 * 7 56,700 * 7Related Questions
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