Bellingham Company produces a product that requires 11 standard pounds per unit. The standard price is $10.5
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Question:
Bellingham Company produces a product that requires 11 standard pounds per unit. The standard price is $10.5 per pound. If 5,900 units used 67,500 pounds, which were purchased at $10.18 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct materials price variance | $________ | favorable or unfavorable |
b. Direct materials quantity variance | $________ | favorable or unfavorable |
c. Direct materials cost variance | $________ | favorable or unfavorable |
Related Book For
Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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