Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per pound. If 14,000 units required 48,000 pounds, which were purchased at $5.40 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per pound. If 14,000 units required 48,000 pounds, which were purchased at $5.40 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1BE: Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds...
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Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per pound. If 14,000 units required 48,000 pounds, which were purchased at $5.40 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
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