Perfect Pet Collar Company makes custom leather pet colars. The company expects

Question

Perfect Pet Collar Company makes custom leather pet colars. The company expects each collar to require 1.95 feet of leather and predicts leather will cost $3.40 per foot. Suppose Perfect Pet made 90 collars during February. For these 90 collars, the company actually averaged 2.20 feet of leather per collar and paid $2.90 per foot. Required: 1. Calculate the standard direct materials cost per unit. (Round your answer to 2 decimal places.) rd Direct Materials per Colar 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 6. Calculate the direct materials price and quantity variances. (Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Material Price Vanianca Direct Material Quantity Variance

Explanation / Answer

Amt in $ Ans to 1 Standar Direct material cost per Colar 1.95 *$ 3.40 6.63 Actual Direct material cost per Colar 2.20*$2.90 6.38 Ans to 2 Direct materials price variance = (Standard cost per unit– Actual cost per unit) x Actual Quantity                                                                           Here Standard cost per unit >Actual cost per unit, hence Direct Material Price variance shall be "Favourable". Ans to 3 Direct materials quantity variance = Standard Cost per unit x (Total Standard Qty. – Total Actual Qty.)                                                                                Here Standard Qty. per colar

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