Last month, Bramble Corporation purchased and used the same quantity of material
ID: 2599070 • Letter: L
Question
Last month, Bramble Corporation purchased and used the same quantity of material in producing its product, speed bumps for traffic control (Click the icon to view the table.) Complete the following table (Round your answers to two decimal places.) Medium Large Direct materials information Standard pounds per unit Standard price per pound Actual quantity purchased and used per unit Actual price paid for material per pound Direct materials price variance Direct materials quantity variance Total direct material variance Number of units produced speed bump speed bump 10.67 $1.80 16.5 $ 2.60 $ 1.00 10 $ 1.40 $ 880 U$ 6,600 U 1,350 F 280 $ 5,250 U $ 600 F 200 500Explanation / Answer
Material Price Variance = (Standard Price - Actual Price) x Actual Quantity
-880 = (1 - 1.40) x Actual Quantity
- 880 = -0.40 x actual quantity
Actual Quantity = -880 / -0.40
= 2200 Pounds
First answer is wrong
Total Material Variance = Purchase price variance + Quantity variance
= -880 + 600
= 280 Unfav
Second is correct.
Quantity Variance = (Standard Price x standard quantity - standard price x actual quantity)
1350 = (1.80 x standard quantity - 1.80 x 500 x 16.5)
1350 = (1.80 x standard quantity - 14850)
(1350 + 14850) / 1.80 = standard quantity
standard quantity = 9000 pounds
Per unit standard quantity = 9000 / 500 = 18 pounds
third answer is incorrect.
Total Material Variance = Purchase price variance + Quantity variance
-5250 = -6600 + quantity variance
quantity variance = 1350 fav
fourth answer is correct.
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