The standard direct material cost per unit for Willis Group was $124 (= $31 per gallon...
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The standard direct material cost per unit for Willis Group was $124 (= $31 per gallon x 4 gallons per unit). During the period, actual direct materials costs amounted to $1,635,480, materials used totaled 55,440 gallons, and 13,200 units were produced. Required: Compute the direct materials price and efficiency variances for the period. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Price variance Efficiency variance The standard direct material cost per unit for Willis Group was $124 (= $31 per gallon x 4 gallons per unit). During the period, actual direct materials costs amounted to $1,635,480, materials used totaled 55,440 gallons, and 13,200 units were produced. Required: Compute the direct materials price and efficiency variances for the period. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Price variance Efficiency variance
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Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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