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What raw materials cost would be included in the company's flexible budget for March? Raw materials included in flexible budget: Actual units produced Raw materials
What raw materials cost would be included in the company's flexible budget for March? Raw materials included in flexible budget: Actual units produced Raw materials allowed/unit Total raw materials allowed Cost of raw materials/unit Cost of raw materials included in flexible budget What is the materials quantity variance for March? Materials Quantity Variance: SP (AQ-SQ) Standard quantity of materials allowed: Actual units produced (a) Standard quantity allowed per unit (b) Total quantity allowed (c) Actual quantity of materials used (d) **Materials Quantity Variance ** If actual quantity of materials used exceed standard quantity of materials allowed, materials quantity variance would be unfavorable and vice versa. If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160,000 pounds in production, what would be the materials price variance for March? Materials Price Variance AQ (AP-SP) Actual Price/ pound (a) Standard price/pound (b) Variance (a) - (b)=(c) Actual quantity of raw materials used (d) *Materials Price Variance (c) x (d) If actual price paid is greater than standard price allowed, the material price variance would be unfavorable and vice versa
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