Brief Exercise 23-4 Simba Company\'s standard materials cost per unit of output

Question

Brief Exercise 23-4 Simba Company's standard materials cost per unit of output is $9.89 (2.30 pounds x $4.30). During July, the company purchases and uses 2,070 pounds of materials costing $10,971 in making 1,000 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 declmal places, e.g. 52.75 and final answers to o declmal places, e.g. 52.) Total materials varlance s Materials price variance Materials quantity variance Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

((2.3 * 1,000) – 2,070)) * $4.30 = $989 favourable

Actual price per pound = $10,971/2,070 = $5.30

            ($4.30 - $5.30) * 2,070 = $2,070 unfavourable

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