DM variances

Bell Inc. manufactures a product that requires five pounds of material. The purchasing agent has an opportunity to purchase the necessary material at a vendor$$s bankruptcy sale at $$1\mathrm{.}40$ per pound rather than the standard cost of $$2\mathrm{.}10$ per pound. The purchasing agent purchases $200,000$ pounds of material on May $31.$ During the next four months, the company$$s production and material usage was as follows:

Production Quantity Used

June $6,00032,800$ pounds

July $6,80035,280$ pounds

August $5,80029,900$ pounds

September $5,00026,200$ pounds

Note: Round all of your final answers below to the nearest whole dollar.

a$.$ What is the material price variance for this purchase?

Note: Do not use a negative sign with your answer.

Material price variance $Answer

$140000$

Answer

b$.$ What is the material quantity variance for each month for this material?

Note: Do not use a negative sign with your answers.

June material quantity variance Answer

$0$

Answer

July material quantity variance Answer

$0$

Answer

August material quantity variance Answer

$0$

Answer

September material quantity variance Answer

$0$

AnswerDM variances

Bell Inc. manufactures a product that requires five pounds of material. The purchasing agent has an opportunity to purchase

the necessary material at a vendor's bankruptcy sale at $$1\mathrm{.}40$ per pound rather than the standard cost of $$2\mathrm{.}10$ per pound. The

purchasing agent purchases $200,000$ pounds of material on May $31.$ During the next four months, the company's production

and material usage was as follows:

Note: Round all of your final answers below to the nearest whole dollar.

a$.$ What is the material price variance for this purchase?

Note: Do not use a negative sign with your answer.

Material price variance $

b$.$ What is the material quantity variance for each month for this material?

Note: Do not use a negative sign with your answers.