Exercise 23-5

The standard cost of Product B manufactured by Pharrell Company includes 3.5 units of direct materials at $5.4 per unit. During June, 27,300 units of direct materials are purchased at a cost of $5.15 per unit, and 27,300 units of direct materials are used to produce 7,700 units of Product B. (a) Compute the total materials variance and the price and quantity variances.

Total materials variance		$		Neither favorable nor unfavorableFavorableUnfavorable
Materials price variance		$		UnfavorableNeither favorable nor unfavorableFavorable
Materials quantity variance		$		Neither favorable nor unfavorableUnfavorableFavorable

(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.50 and the quantity purchased and used is 26,800 units.

Total materials variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Materials price variance		$		UnfavorableNeither favorable nor unfavorableFavorable
Materials quantity variance		$		UnfavorableNeither favorable nor unfavorableFavorable

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

Open Show Work

LINK TO TEXT

Question Attempts: 0 of 5 used

SAVE FOR LATER

SUBMIT ANSWER