Managerial Accounting F17 Homework: E11-20A Score: 0 of 2 pts E11-20A (similar t

Question

Managerial Accounting F17 Homework: E11-20A Score: 0 of 2 pts E11-20A (similar to) | 1 of 1 (0 complete) Last month, Bugsby Corporation purchased and used the same quantity of material in producing its product, speed bumps for traffic control. 6 Data Table speed bump Large speed bump Direct materials information Standard pounds per unit. Standard price per pound Actual quantity purchased and used per unit Actual price paid for material per pound Direct materials price variance Direct materials quantity variance.. Total direct material variance Number of units produced Medium 14 1.50 $ 2.20 15 S 2.80 S 2.20 s 4,550 U s 750F S 5,400 U S 4,080 U 500 600 Print Done

Explanation / Answer

Solution:-

For Medium Bump:-

Material Price Variance = (Standard Price - Actual Price)*Actual Qnty

-4550 = (1.50-2.20)*AQ

-4550 = -0.70AQ

4550 = 0.7 AQ

AQ = 4550/0.70

AQ = 6500

AQ Per Units = 6500/500 = 13 Pounds

Total Direct Material Varince = Direct Material Price Variance + Direct material Qunatity Variance

= 4550 U + 750 F

= 3800 U

For Large Bump:-

Direct Material Qnty Variance =  Total Direct Material Variance - Direct Material Price Variance

= -4080 +5400

= 1320 F

Material Qnty Variance = (Standard Quantity-Actual Quantity)*Standard Price

1320= (SQ*600 - 15*600)*2.20

1320 = 1320SQ - 19800

SQ = 21120/1320

SQ = 16

Standard Quantity = 16 Pounds

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