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Kearny Inc. produces tablet computers. The company uses crystal LCD displays for its products. Each tablet uses one display. The company produced 15,000 tablets during
Kearny Inc. produces tablet computers. The company uses crystal LCD displays for its products. Each tablet uses one display. The company produced 15,000 tablets during February. However, due to LCD defects, the company actually used 15,250 LCD displays during February. Each display has a standard cost of $1.90. The 15,250 LCD displays were purchased for February production at a cost of $27,450.
The following data relate to the direct materials cost for the production of automobile tires: Actual: 48,300lbs. at $1.90 per lb. Standard: 46,900lbs. at $1.95 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a fa as a negative number using a minus sign and an unfavorable variance as a positive number. b. The direct materials price variance should normally be reported to the Purchasing Department . When lower amounts are used because of production efficiencies, the variance would be reported to the! When the favor materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the Feedback Cheok My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing co
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