What is the materials price variance for the month? (Input the amount as a posit
ID: 2482259 • Letter: W
Question
What is the materials price variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)
What is the materials quantity variance for the month? (Input the amount a as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)
The following materials standards have been established for a particular product:
Explanation / Answer
a.
Calculation of materials price variance for the month:
Formula :
Materials price variance = (Actual Price - Standard Price )* Actual Quantity Purchased
Actual Price = ( Actual cost of materials purchased / Actual materials purchased) = $20970 / 1800 grams =
$11.65
per grams
Standard Price
$13
per grams
Actual Quantity Purchased
1800
grams
Materials price variance = (11.65-13)*1800 =
$2,430
F
b.
Calculation of materials quantity variance for the month:
Formula :
Materials quantity variance = (Actual Quantity used- Standard Quantity) * Standard Price
Actual Quantity used
1100
grams
Standard Quantity = (Actual output*Standard quantity per unit of output) = (340 units * 3 grams) =
1020
grams
Standard Price
$13
per grams
Materials quantity variance = (1100-1020)*13 =
$1,040
U
a.
Calculation of materials price variance for the month:
Formula :
Materials price variance = (Actual Price - Standard Price )* Actual Quantity Purchased
Actual Price = ( Actual cost of materials purchased / Actual materials purchased) = $20970 / 1800 grams =
$11.65
per grams
Standard Price
$13
per grams
Actual Quantity Purchased
1800
grams
Materials price variance = (11.65-13)*1800 =
$2,430
F
b.
Calculation of materials quantity variance for the month:
Formula :
Materials quantity variance = (Actual Quantity used- Standard Quantity) * Standard Price
Actual Quantity used
1100
grams
Standard Quantity = (Actual output*Standard quantity per unit of output) = (340 units * 3 grams) =
1020
grams
Standard Price
$13
per grams
Materials quantity variance = (1100-1020)*13 =
$1,040
U
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.