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    Balt Company

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    Balt Company used 5,000 pounds of Material H to produce 800 units of Product C8 last period. The company has established the standard of using 7 pounds of Material H per unit of C8, at a price of $7.50 per pound. During the period the inventory for Material H decreased by 2,000 pounds. The firm spent $25,000 during the period to purchase material H.

    Required: Calculate the direct materials price and usage variances (be sure to indicate whether the variances are favorable or unfavorable).

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    Solution Preview

    Calculate the direct materials price and usage variances
    Balt Company used 5,000 pounds of Material H to produce 800 units of Product C8 last period. The company has established the standard of using 7 pounds of Material H per unit of C8, at a ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate the direct materials price and usage variances.

    $2.19

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