Question
Ceasar pants standard cost included 0.70 metres of direct material per pants at $3.80 per metre. Ceasar actually used 32,500 metres of direct material at
Ceasar pants standard cost included 0.70 metres of direct material per pants at $3.80 per metre. Ceasar actually used 32,500 metres of direct material at a cost of $3.75 per metre to produce 50,000 pants.
a) Calculate the direct materials price variance: $ Answer
b) Is the direct materials price variance favourable or unfavourable?
c) Calculate the direct materials quantity variance: $ Answer
d) Is the direct materials quantity variance favourable or unfavourable?
e) Calculate the total direct materials variance: $ Answer
f) Is the total direct materials variance favourable or unfavourable?
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