Planned production of widgets $($in units$)$:

Actual production of widgets $($in units$)$:

Budgeted price of copper:

Actual price of copper:

Budgeted copper requirements $($from the static budget$)$

Actual amount of copper used in production:

Actual amount of copper purchased:

Required:

A$)$ Calculate the price variance for copper, assuming that the price variance is recognized at the

time the copper is purchased. Is this variance favorable or unfavorable?

B$)$ Calculate the price variance for copper, assuming that the price variance is recognized at the

time the copper is put into production. Is this variance favorable or unfavorable?

C$)$ Calculate the quantity $($usage$)$ variance for copper. Is this variance favorable or unfavorable?

D$)$ Calculate the flexible budget and the flexible budget variance for copper.

E$)$ Calculate the static budget variance for copper.