Use the following information about Bran written-response question 32 dt Co. to

Question

Use the following information about Bran written-response question 32 dt Co. to answer questions 23 through 26, and for Brandt C of Product R2D2: o.has the following standard material and labor quantities and costs per unit 1.62 pounds Standard material quantity in pounds per production unit Standard material cost in dollars per pound Standard labor hours per production unit Standard labor rate in dollars per hour s3.30 0.10 hours 12.00 e company purchased 100,600 pounds of material at $3.20 per pound. In rial During July, th July, the company produced 50,000 units of Product R2D2 with the following mate and labor usage: 86,310 pounds Actual material usage in pounds Actual total labor hours Actual labor rate in dollars per hour 5,400 hours S 12.25 Answers are rounded to the nearest dollar. Variances are either favorable (F) or unfavorable (U) 23. Refer to Brandt Company. What is the material price variance (calculated at point of purchase)? a. $16,992 U b. $10,060 F C. $8,631 d. $8,892 U 24. Refer to Brandt Company. What is the material quantity variance? a. $17,523 U b. $8,100 U C. $8,100 d. $8,892 F

Explanation / Answer

23. material price variance = (Standard price - Actual price) * actual quantity

= ($3.30 - $3.20) * 100600

= $.10 * 100600

= 10600 (F)

Option b is correct

24. Material quantity variance = (Standard quantity - Actual quantity) * Standard price

= ((50000*1.62) - 100600) * $3.3

= (81000-86310)*3.3

= 5310 * $3.3 = $17523(U)

Option a is correct

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