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The standard cost of Product B manufactured by Pharrell Company includes2.6units of direct materials at $7.00per unit. During June,27,300units of direct materials are purchased at a cost of $6.75per unit, and27,300units of direct materials are used to produce10,400units of Product B.

(a)

Compute the total materials variance and the price and quantity variances.

Total materials variance$

enter a dollar amount

select an option

Unfavorable

Favorable

Neither favorable nor unfavorable

Materials price variance$

enter a dollar amount

select an option

Neither favorable nor unfavorable

Unfavorable

Favorable

Materials quantity variance$

enter a dollar amount

select an option

Favorable

Neither favorable nor unfavorable

Unfavorable

(b)

Compute the total materials variance and the price and quantity variances, assuming the purchase price is $7.05and the quantity purchased and used is26,700units.

Total materials variance$

enter a dollar amount

select an option

Neither favorable nor unfavorable

Favorable

Unfavorable

Materials price variance$

enter a dollar amount

select an option

Neither favorable nor unfavorable

Unfavorable

Favorable

Materials quantity variance$

enter a dollar amount

select an option

Favorable

Neither favorable nor unfavorable

Unfavorable

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