1.00 points Perfect Pet Collar Company makes custom leather pet collars. The com

Question

1.00 points Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.30 feet of leather and predicts leather will cost $4.10 per foot. Suppose Perfect Pet made 80 collars during February. For these 80 collars, the company actually averaged 2.40 feet of leather per collar and paid $3.65 per foot. Required: 1. Calculate the standard direct materials cost per unit. (Round your answer to 2 decimal places.) Direct Materials per Collar 2. Without performing any calculations, determine whether the direct materials price variance ill be favorable or unfavorable irect Material Price Variance 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. irect Material

Explanation / Answer

1) Standard direct material cost per unit = 2.3*4.1 = 9.43 per unit

2) Direct material price variance is favorable

3) Direct material quantity variance is unfavorable

6) Direct material price variance = (4.1-3.65)*192 = 86.40 F

Direct material quantity variance = (80*2.3-192)*4.1 = 32.80 U

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