60.1K

Verified Solution

Link Copied!

29)

The following materials standards have been established for a particular product:

Standard quantity per unit of output	3.4	grams
Standard price	$12.00	per grams

The following data pertain to operations concerning the product for the last month:

Actual materials purchased	2,200	grams
Actual cost of materials purchased	$ 25,630
Actual materials used in production	1,500	grams
Actual output	410	units

The direct materials purchases variance is computed when the materials are purchased.

Required:
a.	What is the materials price variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Materials price variance

$

(Click to select) F U None

b.

What is the materials quantity variance for the month? (Input the amount a as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Materials quantity variance

$

(Click to select) F U None

Answer & Explanation Solved by verified expert

See Answer