Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's all and Lube Company is a service company that offers oil changes

image text in transcribed
image text in transcribed
Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's all and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change tales 24 minutes and 6.2 quarts of oil are used in June, Guillermo's Oil and Lube had 080 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June Actual number of oil changes performed: 980 Actual number of quarts of oil used: 6,020 quarto Actual orice paid per quart of oil: 5.10 Standard prio per quart of oil: 15.05 Required: 1. Calculate the direct materiale price varlanco (MPVand the direct materiale tage variance (UV) for one using the formula approach. It required, round your answers to the nearest cent MPV MUV 2. Calculate the total direct materials variance for all for June, If required, round your answer to the nearest cent 3. What if the actual number of quarts of all purchased in Sune had been 6,100 quarts, and the materials price variance was calculated at the time of Durchado What would be the materials price variance (MPV) Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If ra round your answers to the nearest cent. MPV MUV 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. 3. What if the actual number of quarts of all purchased in June had been 6,100 quarts, and the materials price variance was calculated at the tir purchase? What would be the materials price variance (MPV)? What would be the materials usage variance (MUVI? If required, round your answer to the nearest cent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds

10th Edition

126410068X, 9781264100682

More Books

Students also viewed these Accounting questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago