Exercise 15-15 Marigold Corporation prepared the following variance report. Fill

Question

Exercise 15-15 Marigold 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.) MARIGOLD CORPORATION Variance Report-Purchasing Department For Week Ended January 9, 2017 Type of Price Variance Explanation Materials Quantity Purchased Actual Price Standard Price Rogue11 Storm17 Beast29 $5.15 5.00 $4,020 Price increase Rush order Bought larger quantity 6,600 oz. $3.27 $528 Unfavorable S 21,600 units $0.45 $864 Favorable Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Material price variance = Actual quantity purchased * (Actual price - Standard price)

Material price variance for Rogue11 = 4,020 Unfavourable (as actual price is higher than standard)

4,020 = Actual quantity purchased * (5.15 - 5)

Actual quantity purchased = 26,800.

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Material price variance for Storm17 = 528 Unfavourable

528 = 6,600 * (Actual price - 3.27)

Actual price = 3.35.

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Material price variance for Beast29 = 864 favourable

(864) = 21,600 * (0.45 - Standard price)

Standard price = 0.49.

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