Question
Gala Enterprises reports the following information regarding the production on one of its products for the month. Direct materials standard : (3 lbs. @ $4/lb.)$12
Gala Enterprises reports the following information regarding the production on one of its products for the month.
Direct materials standard : (3 lbs. @ $4/lb.)$12 per finished unit
Actual direct materials used 250,000 lbs.
Actual finished units produced 90,000 units
Actual cost of direct materials used$980,000
Requirement 1:
Compute the direct materials cost variance and identify as either F for favorable or U for unfavorable.
Cost variance =, F/U
Requirement 2:
Compute the direct materials price variance and identify as either F for favorable or U for unfavorable.
Price variance =, F/U
Requirement 3:
Compute the direct materials quantity variance and identify as either F for favorable or U for unfavorable.
Quantity variance =, F/U
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started