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Assume the following: The standard price per pound is $2.20. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The
- Assume the following:
- The standard price per pound is $2.20.
- The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
- The actual quantity of materials purchased is 49,800 pounds.
- The actual quantity of materials used in production is 50,700 pounds.
- The actual cost of materials purchased was $112,050.
- The company produced 13,000 units of finished goods during the period.
- What is the materials price variance? What does this variance suggest?
- What is the materials quantity variance? What does this variance suggest?
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