Exercise 23-5 Partially correct answer. Your answer is partially correct. Try again. The standard cost of Product B manufactured by Pharrell Company includes 3.1 units of direct materials at $6.1 per unit. During June, 26,900 units of direct materials are purchased at a cost of $5.85 per unit, and 26,900 units of direct materials are used to produce 8,500 units of Product B. (a) Compute the total materials variance and the price and quantity variances.

Question

Business

Martha Lozano

29 September, 13:59

Exercise 23-5 Partially correct answer. Your answer is partially correct. Try again. The standard cost of Product B manufactured by Pharrell Company includes 3.1 units of direct materials at $6.1 per unit. During June, 26,900 units of direct materials are purchased at a cost of $5.85 per unit, and 26,900 units of direct materials are used to produce 8,500 units of Product B. (a) Compute the total materials variance and the price and quantity variances.

+2

Answers (1)

Know the Answer?

Kiara Lloyd · Answer 1

price variance 6,725 favorable

quantity variance 3,355 unfavorable

Explanation:

Materials variance:

price:

actual units x (std - actual price)

26,900 (6.1-5.85) = 6,725

quantity

(standard quantity - actual quantity) x std price

(8,500 x 3.1 - 26,900) x 6.1 = - 3,355