Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance

Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 24 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 900 oil changes.

Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June:

Actual number of oil changes performed: 900 Actual number of quarts of oil used: 6,400 quarts Actual price paid per quart of oil: $5.10 Standard price per quart of oil: $5.05

Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 900 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 900 Actual number of quarts of oil used: 6,400 quarts Actual price paid per quart of oil: $5.10 Standard price per quart of oil: $5.05 Required: MPV MUV 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. $ X the nearest cent. What would be the materials price variance (MPV)? What would be the materials usage variance (MUV)? $