Exercise 8-12BResponsibility for materials price variance

Wayne Pittman Inc. makes ice cream that it sells in 5-gallon containers to retail ice cream parlors. During Year 2, the company planned to make 100,000 containers of ice cream. It actually produced 97,000 containers. The actual and standard quantity and cost of sugar per container follow.

Standard Actual Quantity of materials per container 2 pounds 2.1 pounds Price per pound x $1.16 x $1.20 Cost per container $2.32 $2.52