Peter Ltd produces one product, the Baz. The standard direct material cost of each unit was as

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Peter Ltd produces one product, the Baz. The standard direct material cost of each unit was as follows:

2.5 kilos of material at $4.80 per kilo = $12 per unit. During February 2015, the company budgeted to produce 4500 units of Baz but actual production was 5200 units, using 12 480 kilos of direct material, which cost $59 280.

Required

Calculate the direct material price variance and the direct material usage variance for February 2015.

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Accounting For Cambridge International AS And A Level

ISBN: 9780198399711

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Authors: Jacqueline Halls Bryan, Peter Hailstone

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Question Posted: Sep 22, 2021 01:53 AM

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Peter Ltd produces one product, the Baz. The standard direct material cost of each unit was as

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The direct material price variance is calculated by comparing the actua...View the full answer

Accounting For Cambridge International AS And A Level

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