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Variance Analysis: Determine and interpret the direct materials price and quantity variances for the...

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Accounting

Variance Analysis: Determine and interpret the direct materials price and quantity variances for the three materials. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.

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Part C-August Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows: Actual Direct Materials Price per Unit Cream base $0.016 per oz. Natural oils$0.32 per oz. Bottle (8-oz.) $0.42 per bottle Quantity per Case 102 oz. 31 oz. 12.5 bottles Actual Direct Actual Direct Labo Labor Rate $18.20 14.00 Time per Case 19.50 min. 5.60 min. Mixing Filling Actual variable overhead $305.00 Normal volume 1,600 cases

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