The standards for product V28 call for 8.6 pounds of a raw material that costs $

Question

The standards for product V28 call for 8.6 pounds of a raw material that costs $19.00 per pound. Last month, 2.600 pounds of the raw raw material were used to produce this output material were purchased for $48,880 The actual output of the month was 2 material were purchased for $48.880 The actual output of the month was 270 units of product V28. A total of 2.500 pounds of the es variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? ndicare the stfet f eae by selecting F for fevareble, for unfevoerable. and "None" for no effect( zero variance). Input all amounts as positive values.) a. Materials price vanance b. Materials quantity varance

Explanation / Answer

a. Materials price variance = (AQ × AP) (AQ × SP)

= $48,880 (2,600 × $19.00) = $520 F

b. Materials quantity variance = SP(AQ SQ*)

= $19.00(2,500 2,322) = $3,382 U

*SQ = Standard quantity per unit × Actual output = 8.6 × 270 = 2,322

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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