Wales Company purchased (at a cost of $17,640) and used 3,500 pounds of materials during May. Wales's standard cost of materials per unit produced is based on 2.60 pounds per unit at a cost $5.10 per pound. Production in May was 1,290 units.

Instructions:

(a) Compute the total, price, and quantity variances for materials. 

(b) Assume Wales also had an unfavorable labor quantity variance. What is a possible scenario that would provide one cause for the variances computed in (a) and the unfavorable labor quantity variance?

Answer rating: 100% (QA)

ANSWERA STANDARD PRICE SP 510 ACTUAL COST PER POUND 3500 ... View the full answer