Materials Variances

Assume that Pearle Vision uses standard costs to control the materials in its made$-$to$-$order sunglasses. The standards call for $3$ ounces of material for each pair of lenses. The standard cost per ounce of material is $$12.$ During July, the Santa Clara location produced $6,000$ pairs of sunglasses and used $17,750$ ounces of materials. The cost of the materials during July was $$12\mathrm{.}25$ per ounce, and there were no beginning or ending inventories.

Note: Round answers to the nearest whole number, when needed.

Required

a$.$ Determine the flexible budget materials cost for the completion of the $6,000$ pairs of glasses.

$Answer

b$.$ Determine the actual materials cost incurred for the completion of the $6,000$ pairs of glasses and compute the total materials variance.

$Answer

actual materials cost

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Answer

total materials variance

c$.$ How much of the total variance was related to the price paid to purchase the materials?

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Answer

d$.$ How much of the difference between the answers to requirements $($a$)$ and $($b$)$ was related to the quantity of materials used? $($Hint: Compute materials quantity variance.$)$

$Answer

Answer