A company reports the following for one of its products. Direct materials standard (4 pounds @...

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A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ = Actual Quantity SQ = Standard Quantity AP SP Actual Price Standard Price $ 8 per unit 340,000 pounds 65,000 units $ 612,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ = Actual Quantity SQ = Standard Quantity AP SP Actual Price Standard Price $ 8 per unit 340,000 pounds 65,000 units $ 612,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x

Answer rating: 100% (QA)

To compute the direct materials price and quantity variances we need to compare the actual cost with ... View the full answer