Exercise 23-15 Urban Corporation prepared the following variance report. Fill in
ID: 2537040 • 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
Materials
Quantity
Purchased
Actual
Price
Standard
Price
Price
Variance
Explanation
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URBAN CORPORATION
Variance Report—Purchasing Department
For Week Ended January 9, 2017
Type of
Materials
Quantity
Purchased
Actual
Price
Standard
Price
Price
Variance
Explanation
FavorableUnfavorableNeither favorable nor unfavorable
Price increase Storm17 5,700 oz. $ $3.26 $1,083 Unfavorable Rush order Beast29 22,000 units $0.45 $ $440 Favorable Bought larger quantityExplanation / Answer
Rogue 11 Material price variance = ( actual price - standard price)*Aq purchased 5,640 = (5.25 - 5.05)*x .2x = 5640 x = 5640/.2 x = 28200 Quantity purchased = 28,200 lbs price variance = 5640U Storm 17 Material price variance = ( actual price - standard price)*Aq purchased 1083 = (x -3.26)*5700 1083 = 5700x - 18,582 5700x = 18582+1083 x = (18582+1083)/5700 3.45 Actual price = $3.45 Beast 29 Material price variance = ( actual price - standard price)*Aq purchased 440 = (0.45 - x)*22000 440 = 9900 - 22000x x = (9900+440)/22000 0.47 Standard price = $0.47
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