please answwer: Easy Roller, Inc., manufactures plastic mats to use with rolling

Question

please answwer:

Easy Roller, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Easy Roller had the following actual results for the past year. Required: Calculate Easy Roller's direct materials price and quantity variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect(i.e., Zero variance). Do not round intermediate calculations. Omit the "$" sign in your response.)

Explanation / Answer

Hi,

Please find the answers as follows:

Part A

Direct Material Price Variance = Actual Quantity*(Actual Price - Standard Price) = 15320000*(9192000/15320000 - .75) = 2298000 (F)

Direct Material Qty Variance = Standard Price*(Actual Quantity - Standard Quantity) = .75*(15320000 - 14*1110000) = 165000 (F)

Thanks.

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