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Aspire Liquids Inc. provides the following information regarding its standard cost system. Standard per Unit Standard Price Standard Price per Unit Direct Materials 3 gallons

Aspire Liquids Inc. provides the following information regarding its standard cost system.


Standard per UnitStandard PriceStandard Price per Unit
Direct Materials3 gallons$5.00 per gallon$15.00

During the period, the company produced and sold 23,000 units and actually used 75,000 gallons of Direct Materials at an actual cost of $4.75 per gallon.


Which of the following is the correct calculation and interpretation of the Price Variance for Aspire Liquids Inc.?

  1. $75,000 U
  2. $18,750 F
  3. $356,250 F
  4. $30,000 U
  5. $4.75 F
  6. $375,000 F


Which of the following is the correct calculation and interpretation of the Quantity Variance for Aspire Liquids Inc.?

  1. $30,000 F
  2. $345,000 U
  3. $75,000 U
  4. $30,000 U
  5. $5,675 F
  6. None of the listed answers are correct.


Which of the following is the correct calculation and interpretation of the Flexible-Budget Variance for Aspire Liquids Inc.?

  1. $18,750 F
  2. $69,000 U
  3. $11,250 U
  4. $14,750 F
  5. $375,000 U
  6. None of the listed answers are correct.



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