Question
Use the Dynamic Exhibit to answer the following questions. Round your answers to two decimal places, if necessary. 1. The direct materials price variance is
Use the Dynamic Exhibit to answer the following questions.
Round your answers to two decimal places, if necessary.
1. The direct materials price variance is unfavorable when the actual price per yard is $ or $.
2. The direct materials quantity variance is favorable when the actual quantity per yard is or .
3. When the actual price per yard is $6.00 and the actual quantity per yard is 7,100, the total direct material cost variance is
- favorable
- unfavorable
4. There are no variances when the actual price per yard is $ and the actual quantity per yard is because the actual price and quantity match the standard price and quantity.
Western Rider Inc., a manufacturer of blue jeans, uses standard costs in its budgets. The standard direct materials price (per yard) and standard direct materials quantity (in yards) for the production of 5,000 XL style jeans are as follows: Standard Price (per yard) Standard Quantity (in yards) $5.00 7,500 yards Determine (a) Direct material price variance, (b) Direct material quantity variance and (c) Total direct material cost variance. Western Rider Inc., a manufacturer of blue jeans, uses standard costs in its budgets. The standard direct materials price (per yard) and standard direct materials quantity (in yards) for the production of 5,000 XL style jeans are as follows: Standard Price (per yard) Standard Quantity (in yards) $5.00 7,500 yards Determine (a) Direct material price variance, (b) Direct material quantity variance and (c) Total direct material cost varianceStep by Step Solution
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