Question

Send to Gradebook Question 3 View Policies Current Attempt in Progress Simba Company's standard materials cost per unit of output is $11.75 (2.50 pounds x $4.70). During July, the company purchases and uses 3,300 pounds of materials costing $17490 in making 1.200 units of finished product. Compute the total price and quantity materials variances. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to decimal places, eg. 52.) Total materials variance Materials price variance $ Materials quantity variance $ e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answe Send to Gradebook PARA

Answer 1

Solution

Total Material Variance	$           3,390.00	Unfavourable-U
Material Price Variance	$           1,800.00	Unfavourable-U
Material quantity variance	$           1,410.00	Unfavourable-U

Working

Actual DATA for		1200	Units
	Quantity (AQ)	Rate (AR)	Actual Cost
Direct Material	3300	$       5.30	$          17,490.00

.

Standard DATA for		1200	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct Material	( 2.5 pound x 1200 Units)=3000 pound	$                   4.70	$            14,100.00

.

Material Price Variance
(	Standard Rate	-	Actual Rate	)	x	Actual Quantity
(	$                    4.70	-	$                     5.30	)	x	3000
	-1800
	Variance		$             1,800.00			Unfavourable-U
Material Quantity Variance
(	Standard Quantity	-	Actual Quantity	)	x	Standard Rate
(	3000	-	3300	)	x	$              4.70
	-1410
	Variance		$             1,410.00			Unfavourable-U
Total Material Variance
(	Standard Cost	-	Actual Cost	)
(	$         14,100.00	-	$           17,490.00	)
	-3390
	Variance		$             3,390.00			Unfavourable-U