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# Variance calculations

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A company produces the follow incomplete information regarding actual and budgeted direct material and production:
Budgeted Actual
Units produced 1,500 UNITS ? units
Material used 6,000 kg 6,640 kg
Price pad per kg \$? \$2.10

The following variances are known
Material price variance \$664 U
Material flexible variance \$1,144 U
Material volume variance \$800 U
1. What is the budgeted price per kg?
2. What is the efficiency variance for direct materials?
3. What is the actual number of units produced?

#### Solution Preview

A company produces the follow incomplete information regarding actual and budgeted direct material and production:
Budgeted Actual
Units produced 1,500 UNITS ? units
Material used 6,000 kg 6,640 kg
Price pad per kg \$? \$2.10

The following variances are known
Material ...

#### Solution Summary

The solution explains how to calculate some figures given the variances.

\$2.19