Question
Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information
Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows:
Product Names | Steel | Plastic |
Direct materials information | ||
Standard pounds per unit | 3lb. | 1lb. |
Standard Price (SP) per pound | $3.50 | ? |
Actual Quantity (AQ) used per unit | 2lbs. | 3.5lbs. |
Actual Price (AP) paid for material | $1.25 | $2.50 |
Actual Quantity Purchased (AQP) and used | 2,900lbs. | 1,500lbs. |
Price variance | ? | $2,430F |
Quantity variance | $1,400U | ? |
Flexible budget variance | ? | $1,385F |
Number of units produced | 400 | 475 |
What is the direct material quantity variance for plastic in the dolls?
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