Copy of The standard cost of Product B includes 2 units of direct materials at $

Question

Copy of The standard cost of Product B includes 2 units of direct materials at $4 per unit. During June, 20,790 units of direct materials were purchased and used at a cost of $4.3 per unit to produce 10,100 units of Product B Compute the variance requested below and indicate whether the variance is favorable or unfavorable, by indicating U or F. Place the letter by the number, DO NOT add a space. Example, if the variance is 100 unfavorable, enter 100U (DO NOT PUT 100 U) The Direct Materials spending variance is $

Explanation / Answer

The Direct Materials Spending Variance = (Actual Quantity * Actual Price ) - ( Actual Quantity * Standard Price)

= ( 20,790 * $ 4.3) - ( 20,790 * $ 4)

= $ 6,237 Unfavorable

Since the Actuals is more than the Standard, the Variance is Unfavorable.

Hence the correct answer is 6237U

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.