A company reports the following for one of its products. Direct materials standard (5 pounds @...

 

Transcribed Image Text:

A company reports the following for one of its products. Direct materials standard (5 pounds @ $2 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ = Standard Quantity =1 AP Actual Price 11 SP=Standard Price $ 10 per unit 380,000 pounds 65,000 units $ 703,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost X X X Standard Cost A company reports the following for one of its products. Direct materials standard (5 pounds @ $2 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ = Standard Quantity =1 AP Actual Price 11 SP=Standard Price $ 10 per unit 380,000 pounds 65,000 units $ 703,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost X X X Standard Cost

Answer rating: 100% (QA)

To compute the direct materials price and quantity variances we need to compare the actual cost with ... View the full answer