Direct Materials Variances Bellingham Company produces a product that requires s
ID: 2530421 • Letter: D
Question
Direct Materials Variances
Bellingham Company produces a product that requires six standard pounds per unit. The standard price is $10 per pound. If 4,000 units used 23,000 pounds, which were purchased at $10.5 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct materials price variance $ favorable or unfavorable b. Direct materials quantity variance $ favorable or unfavorable c. Direct materials cost variance $ favorable or unfavorableExplanation / Answer
a. Direct materials price variance = 23000*(10.5-10)= $11500 unfavorable b. Direct materials quantity variance = 10*(23000-4000*6)= -10000 favorable c. Direct materials cost variance =(23000*10.5)-(4000*6*10)= 1500 unfavorable
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.