Urban Corporation prepared the following variance report. Fill in the missing am

Question

Urban Corporation prepared the following variance report.

Fill in the missing amounts or letters in the report. (Round actual and standard price answers to 2 decimal places, e.g. 2.75.)

URBAN CORPORATION
Variance Report—Purchasing Department
For Week Ended January 9, 2017

Type of
Materials

Quantity
Purchased

Actual
Price

Standard
Price

Price
Variance

Explanation

URBAN CORPORATION
Variance Report—Purchasing Department
For Week Ended January 9, 2017

Type of
Materials

Quantity
Purchased

Actual
Price

Standard
Price

Price
Variance

Explanation

Rogue11

??

lbs. $5.20 $4.95 $6,525

FavorableNeither favorable nor unfavorableUnfavorable

Price increase Storm17 4,900 oz. $

??

$3.22 $882 Unfavorable Rush order Beast29 20,000 units $0.40 $

??

$600 Favorable Bought larger quantity

Explanation / Answer

the following is the required table:

notes:

1.Rogue 11 = a price increase in always result in unfavorable Price variance.

price variance = actual quantity * (actual price - standard price)

here,

$6,525 = actual quantity * ($5.20 - $4.95)

=>$6,525 = actual quantity *($0.25)

=> actual quantity = $6,525 / 0.25

=>actual quantity = 26,100 pounds.

now,

storm 17,

price variance = actual quantity *(actual price - standard price)

=>$882 = 4,900*(actual price - $3.22)

=>$0.18 = actual price - $3.22

=>actual price = $3.40

now,

beast29.

we have favourable variance

=> actual quantity * (actual price - standard price) => - price variance

=>20,000 units * ($0.40 - standard price) = > - $600.

=>$0.40 - standard price = -$0.03.

=> standard price = $0.43.

Types of materials Quantity purchased Actual price Standard price Price variance Explanation Rogue11 26,100 lbs $5.20 $4.95 $6,525 Unfavourable Price increase Storm 17 4,900 oz $3.40 $3.22 $882 unfavorable rush order Beast29 20,000 units $0.40 $0.43 $600 favourable bought larger quantity

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