Required information Use the following information for the Exercises below. The

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Required information Use the following information for the Exercises below. The following information applies to the questions displayed below.] A manufactured product has the following information for June standard Actual 55,900 lbs. $8.20 per lb. Direct materi ls Direct labor overhead Units manufactured (7 lbs. s8 per 1b.) (2 hrs. $16 per hr.) 15,500 hrs. $16.50 per hr. (2 hrs. $12 per hr.) $195,000 7,900 Exercise 21-9 Direct materials variances LO P2 Compute the direct materials price variance and the direct materials quantity variance. Indicate whether eachw unfavorable AQ- Actual Quantity SQ = Standard Quantity

Explanation / Answer

Solution:

Direct material price variance = $11,180 U

Direct material quantity variance = $4,800 U

Direct material cost variance = $11,180 + $4,800 = $15,980

Direct Material Cost Variance Actual Cost Standard cost for actual quantity Standard Cost AQ * AP = AQ * SP = SQ * SP = 55900 $8.20 $458,380.00 55900 $8.00 $447,200.00 55300 $8.00 $442,400.00 $11,180 U $4800 U Direct Material Price Variance Direct Material Qty variance

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