Chapter $21.$ Lecture & Practice Assignments

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$3$

A company reports the following for one of its products.

$6\mathrm{.}25$

points

Direct materials standard $(4$ pounds @ $$2$ per pound$)$

Actual direct materials used

Actual units producedAQ$=$ Actual QuantitySQ$=$ Standard QuantityAP$=$ Actual PriceSP$=$ Standard PriceCompute the direct materials price and quantity variances and identify each as favorable or unfavorable.

$\backslash$table$[[$Actual Cost,,,S$,,,,,,$Standard Cost$],[AQ,,x,AP,,,AQ,,x,SP,,,$SQ$,x,$SP$],[300,000,,x,$$$1\mathrm{.}80,,,300,000,,x,$$$,2\mathrm{.}00,,,,x,],[$$$,540,000,,,,,$$$,600,000,,,,,,],[,,,,$$$,60,000,{?}_{?},,,,$$$,0,,,],[,,,,,7,$$$60,000,,,,,,,,],[,,,,,,0,,,,,,,,],[,,,,,,,,,,,,,,]]$