Ask Question
4 June, 06:39

Simba Company's standard materials cost per unit of output is $10.00 (2.00 pounds x $5.00). During July, the company purchases and uses 3,200 pounds of materials costing $16,192 in making 1,500 units of finished product.

+1
Answers (1)
  1. 4 June, 08:45
    0
    Material Cost variance = Standard cost - Actual cost

    = 3000*5 - 16192

    = 1192 A

    Material Rate Variance = (S. R. - A. R.) A. Q

    = (5 - 5.06) 3200

    = 192 A

    Material usage variance = (S. Q. - A. Q.) S. R

    = (3000 - 3200) 5

    = 1000 A

    Working Notes:

    Actual Output = 1500 units

    Standard qty of Material for Actual Output = 1500*2

    = 3000 pounds

    Actual qty. used = 3200 pounds

    Actual rate/pound = $16192/3200

    = $5.06
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Simba Company's standard materials cost per unit of output is $10.00 (2.00 pounds x $5.00). During July, the company purchases and uses ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers