Exercise 23-5

The standard cost of Product B manufactured by Pharrell Company includes 2.2 units of direct materials at $6.1 per unit. During June, 27,200 units of direct materials are purchased at a cost of $5.90 per unit, and 27,200 units of direct materials are used to produce 12,200 units of Product B. (a) Compute the total materials variance and the price and quantity variances.

Total materials variance $ Favorable Unfavorable Neither favorable nor unfavorable Materials price variance $ Unfavorable Neither favorable nor unfavorable Favorable Materials quantity variance $ Unfavorable Favorable Neither favorable nor unfavorable

(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.20 and the quantity purchased and used is 26,800 units.

Total materials variance $ Favorable Unfavorable Neither favorable nor unfavorable Materials price variance $ Neither favorable nor unfavorable Unfavorable Favorable Materials quantity variance $ Unfavorable Favorable Neither favorable nor unfavorable

Click if you would like to Show Work for this question: Open Show Work