Question
I need the answer to Direct Materials Quanity variance. I know that this part is unfavorable, but I need to know the other answer to
I need the answer to Direct Materials Quanity variance. I know that this part is unfavorable, but I need to know the other answer to it. I know that the Direct Materials Price Variance is 3,000 and favorable, but as I said I just need to know the answer to Direct Materials Quanity Variance with detail steps as to how you get the answer. Another Chegg expert said the direct materials quanity variance was 15,500, but this was incorrect and I need the correct answer. Thank you!
Exercise 8-14 Direct Materials Variances [LO8-4]
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost | |||||
Direct materials | 4.6 | pounds | $ | 2.50 | per pound | $ | 11.50 |
Direct labor | 0.2 | hours | $ | 12.00 | per hour | $ | 2.40 |
During the most recent month, the following activity was recorded: |
a. | Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. |
b. | The company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) |
c. | 750 hours of direct labor time were recorded at a total labor cost of $10,425. |
Required: | |
Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) | |
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