Quality Fluids Ltd manufactures a single product for the motor industry. The standard direct material cost...

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Quality Fluids Ltd manufactures a single product for the motor industry. The standard direct material cost for one unit was 3 litres at $10 per litre. The following information is available for the month of February: Products manufactured Direct materials 600 units bought and used at a cost of $19 760 From the start of February there had been an increase, over standard unit cost per litre, of 4%. Calculate, for February, the: (i) total direct material variance (ii) actual material used (iii) direct material price variance (iv) direct material usage variance. Quality Fluids Ltd manufactures a single product for the motor industry. The standard direct material cost for one unit was 3 litres at $10 per litre. The following information is available for the month of February: Products manufactured Direct materials 600 units bought and used at a cost of $19 760 From the start of February there had been an increase, over standard unit cost per litre, of 4%. Calculate, for February, the: (i) total direct material variance (ii) actual material used (iii) direct material price variance (iv) direct material usage variance.

Answer rating: 100% (QA)

i To calculate the total direct material variance we can use the formula Total Direct Material Varia... View the full answer