Crane, Inc. purchased 1,830 pounds of direct materials at a price of $1.30 per pound. The...

 

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Crane, Inc. purchased 1,830 pounds of direct materials at a price of $1.30 per pound. The standard price of the material is $1.40 per pound. Crane used 1,630 pounds in production while the standard pounds allowed for actual production was 1,430. Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable. Crane, Inc. purchased 1,830 pounds of direct materials at a price of $1.30 per pound. The standard price of the material is $1.40 per pound. Crane used 1,630 pounds in production while the standard pounds allowed for actual production was 1,430. Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.

Answer rating: 100% (QA)

To calculate the direct materials price and quantity variances we need to use the following formulas ... View the full answer