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
Please see the attached file.
1. Concept of Direct Material variance with its classification.
2. Analysis ...
The solution calculates the materials price and quantity variances for paper shredders.