Question
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.60 per pound. 16,000 units used 35,700 pounds, which
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.60 per pound. 16,000 units used 35,700 pounds, which were purchased at $3.75 per pound.
What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct materials price variance | $ fill in the blank 2 | Favorable Unfavorable |
b. Direct materials quantity variance | $ fill in the blank 4 | Favorable Unfavorable |
c. Direct materials cost variance | $ fill in the blank 6 | Favorable Unfavorable |
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Managerial Accounting
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