Question: Im having trouble with figuring out how to find the quantity and Price variances. Is there a formula? Thanks **I figured out how to get
Im having trouble with figuring out how to find the quantity and Price variances.
Is there a formula? Thanks
**I figured out how to get the price variance, Just struggling with the quantity variance. Thanks


West Texas Chemical Company manufactures a product called Kylon, which requires three raw materials. Production is in batches of 1,000 gallons of finished product. The firm uses standard costs as a control device. Its standard costs for materials for each batch of Kylon have been established as follows: Standard Cost Standard Cost Material Quantity per Gallon per Batch Starter 730 gal. $ 1.40 $ 1,022.00 Acid 190 gal. 4.00 760.00 Activator 80 gal. 11.00 880.00 Total 1,000 gal. $ 2,662.00 standard cost The output is packaged in 50-gallon drums. During the month of June 2019, 200 drums of Kylon were produced. There was no beginning or ending inventory of work in process. The materials actually used during June are listed below: Material Quantity Starter 7,370 gal. Acid 1,940 gal. Activator 560 gal. Cost per Gallon $ 1.30 4.40 14.30 Analysis of Materials Variances For Month of June 2019 Costs Standard Actual Quantity Variances Price $ 10,220 9,581 Cost Elements Starter Standard Actual Quantity variance Price variance Acid Standard Actual Quantity variance Price variance Activator Standard Actual 7,600 8,536 8,800 8,008 Quantity variance Price variance Totals $ 26,620 $ 26,125 $ 0
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