The following standards have been established for a raw material used to make product 084: Standard...

 

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The following standards have been established for a raw material used to make product 084: Standard quantity of the material per unit of output 8.3 Standard price of the material $19.50 The following data pertain to a recent month's operations: Actual material purchased 4,600 meters Actual cost of material purchased $ 93,840 Actual material used in production 4,300 Actual output 620 units of product 084 The direct materials purchases variance is computed when the materials are purchased. meters Required: 1. What is the materials price variance for the month? 2. What is the materials quantity variance for the month? meters per meter The following standards have been established for a raw material used to make product 084: Standard quantity of the material per unit of output 8.3 Standard price of the material $19.50 The following data pertain to a recent month's operations: Actual material purchased 4,600 meters Actual cost of material purchased $ 93,840 Actual material used in production 4,300 Actual output 620 units of product 084 The direct materials purchases variance is computed when the materials are purchased. meters Required: 1. What is the materials price variance for the month? 2. What is the materials quantity variance for the month? meters per meter

Answer rating: 100% (QA)

To calculate the materials price variance and materials quantity variance we need to use the followi... View the full answer