Subatomic Shirts' standard cost included 0.70 metres of direct material per t-shirt at $3.80 per metre. Subatomic
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Question:
Subatomic Shirts' standard cost included 0.70 metres of direct material per t-shirt at $3.80 per metre. Subatomic actually used 32,500 metres of direct material at a cost of $3.75 per metre to produce 50,000 t-shirts.
a) Calculate the direct materials price variance: $
b) Is the direct materials price variance favourable or unfavourable?
c) Calculate the direct materials quantity variance: $
d) Is the direct materials quantity variance favourable or unfavourable?
e) Calculate the total direct materials variance: $
f) Is the total direct materials variance favourable or unfavourable?
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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