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Standard Actual Material Cost Per Yard $2.00 $2.10 Standard Yards per Unit 4.5 y

ID: 2472902 • Letter: S

Question

Standard

Actual

Material Cost Per Yard

$2.00

$2.10

Standard Yards per Unit

4.5 yards

4.75 yards

Units of Production

9,500

     5.   Calculate the Total Direct Materials cost variance using the above information:

a.

$9,262.50 Unfavorable

b.

$9,262.50 Favorable

c.

$3,780.00 Unfavorable

d.

$3,562.50 Favorable

     6.   Calculate the Direct Materials Price variance using the above information:

a.

$1,795.50 Favorable

b.

$378.00 Favorable

c.

$4,512.50 Unfavorable

d.

$378.00 Unfavorable

     7.   Calculate the Direct Materials Quantity variance using the above information:

a.

$4,512.50 Unfavorable

b.

$4,512.50 Favorable

c.

$4,750 Unfavorable

d.

$4,750 Favorable

Standard

Actual

Material Cost Per Yard

$2.00

$2.10

Standard Yards per Unit

4.5 yards

4.75 yards

Units of Production

9,500

Explanation / Answer

Answer to the point no.5

Option a.is correct. $9262.5 Unfavorable.

Answer to point no.6

Option C is correct. $4512.5 is correct.

Answer to point No.7

Option C is correct. $4750 is correct.

DIRECT MATERIAL COST VARIANCE Particulars Standard Actual Variance Cost per Unit                      9.00                       9.98 Actual Units                9,500.00                 9,500.00 Tota Cost              85,500.00               94,762.50 (9,262.50)
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