https:// tion.com/flow/connect.htm ework Help Save& Exit Submit Check my work 0

Question

https:// tion.com/flow/connect.htm ework Help Save& Exit Submit Check my work 0 Required information The following information applies to the questions displayed below.) A manufactured product has the following information for June. Direct materials Dizect labor Overhead Units manufactured 6 lbs. $7 per 1b.) (3 hrs. $16 per hr. 24,900 hrs. $16.50 per hr. (3 hrs. $11 per hr) $283,300 0,800 1bs.$7.20 per 1b. 8,400 Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. AQ Actual Quantity SQ Standard Quantity AP Actual Price SP = Standard Price C Prex 4-5 of 6 Next

Explanation / Answer

Direct Material price variance AP (a) SP (b) Variance (c=b-a) AQ (d) Total variance (e=c*d) F/U Direct Material price variance = (AP-SP)*AQ SQ = Standard Quantity AP = Actual price per unit = $ 7.20 SP = Standard price per unit = $ 7 AQ = Actual quantity consumed= 50,800 F= Favourable U = Unfavourable Direct Material price variance AP (a) SP (b) Variance (c=b-a) AQ (d) Total variance (e=c*d) F/U $       7.20 $      7.00 -0.2    50,800 -10160 U Direct Material quantity variance AQ (a) SQ (b) Variance (c=b-a) SP (d) Total variance (e=c*d) F/U Direct Material quantity variance = (AQ-SQ)*SP AQ = Actual quantity consumed= $50,800 / $7.20 = 7055.556 SQ = Standard quantity = 8,400 * 6 = 50,400 SP = Standard price per unit = $ 7 F= Favourable U = Unfavourable Direct Material quantity variance AQ (a) SQ (b) Variance (c=b-a) SP (d) Total variance (e=c*d) F/U      50,800      50,400 -400 7                                 (2,800) U (8,400*6)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.