Explore BrainMass

Explore BrainMass

    Materials price for paper shredders

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Each paper shredder has a standard material cost of 20lbs.at $6.50/lb. or $130 in total. 60,000lbs of material were purchased for $420,000 during the period and 39,000lbs were used in the production of 2,000 good units. Compute the direct materials price and quantity variances. Label them as favorable or unfavorable.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:38 pm ad1c9bdddf
    https://brainmass.com/business/accounting/materials-price-paper-shredders-105937

    Solution Preview

    Please see the attached file.

    1. Concept of Direct Material variance with its classification.

    2. Analysis ...

    Solution Summary

    The solution calculates the materials price and quantity variances for paper shredders.

    $2.19

    ADVERTISEMENT