Question S (of 5. 2.85 points Tercer reports the following on one of its product

Question

Question S (of 5. 2.85 points Tercer reports the following on one of its products Direct materials standard (4 lbs.s2ib) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used 8 per finished unit 300,000 lbs 60,000 units $535,000 Compute the direct materials price and quantity variances. (Round actual price to 2 decimal places.) AQ AP AQ SP sQ SP 300,000 $ 2.00 300,000 x s 200 60,000x S 4.00 0001 600,000 240,000 360,000 or Favorable Direct materials price variance Direct materials quantity variance Total direct materials variance 360000 Unfavorable Unfavorable 360,000 References eBook& Resources ive 21-P2 com Difficulity: Medium Expanded table

Explanation / Answer

Req1: MATERIAL VARIANCES Actual Cost Std cost for 60000 units AQ AQ*AP AP Price Variance AQ AQ*SP SP Qty variance SQ SQ*SP SP 300,000 1.7833 300,000 2 240000 2 (60,000*4 lbs) 535000 600,000 480000 65,000 Fav 120,000 Unfav Material price Variance (AQ*SP-AQ*AP) 65,000 fav Material Qty Variance (SP*SQ-SP*AQ) 120,000 Unfav Total Material Variance 55,000 Unfav

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