Question
Direct Materials Variances Bellingham Company produces a product that requires 15 standard pounds per unit. The standard price is $11 per pound. If 3,900 units
Direct Materials Variances Bellingham Company produces a product that requires 15 standard pounds per unit. The standard price is $11 per pound. If 3,900 units used 56,200 pounds, which were purchased at $11.44 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? 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 - ? - Favorable/Unfavorable?
b. Direct materials quantity variance - ? - Favorable/Unfavorable?
c. Direct materials cost variance - ? - Favorable/Unfavorable?
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