ezto.mheducation.com/hm.tpx value: 5.00 points Regent Corp uses a standard cost

Question

ezto.mheducation.com/hm.tpx value: 5.00 points Regent Corp uses a standard cost system to account for the costs of its one product. Materials standards are 2.8 pounds of material at $14 per pound and 2 hours of labor at a standard wage rate of $11. During July Regent Corp produced 3,270 units. Materials purchased and used totaled 10,060 pounds at a total cost of $142,740. Payroll totaled $147,480 for 13,260 hours worked. a. Caloulate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Vari Favorable None Unfavorable Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable"."Unfavorable", or "None" for no effect (i.o., zero variance)) tity Variance

Explanation / Answer

a.

Actual price is greater than standard price. so it will be Unfavourable

b.

Actual price is greater than standard price. so it will be Unfavourable

Material Price variance = Actual Quantity purchased* (Actual Price - Standard Price) Material Price variance = 10,060 * (($142,740/10,060) - $14) Material Price variance = $1,900 U

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