Key Company produces a single product. The company’s standard cost per unit is based on 2.50 pounds of material at a cost of $11.00 per pound. During the most recent operating period, Key used 16,080 pounds of materials at a total cost of $192,960 and produced 6,700 units of output. Use this information to address the following requirements:

1. Calculate the total budget variance for materials that Key Company would have found in its responsibility report. Indicate whether the variance is favorable or unfavorable.

2. Calculate the materials price variance for materials. Indicate whether the variance is
favorable or unfavorable.

3.Calculate the materials quantity variance for materials. Indicate whether the
variance is favorable or unfavorable.

Answer rating: 100% (QA)

Key Company Material Variances Calculations 1 Total Budget Variance Standard cost per unit 250 pound... View the full answer