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# Total Material Variance and Material Variance

1). Lata Inc., produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,250,000 ounces of aluminum. The actual cost of aluminum was \$0.09 per ounce and the standard price was \$0.08 per ounce. There are no beginning or ending inventories of aluminum.

Calculate the total variance for aluminum for the month of April.

2).
Lata Inc., produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,250,000 ounces of aluminum. The actual cost of aluminum was \$0.09 per ounce and the standard price was \$0.08 per ounce. There are no beginning or ending inventories of aluminum.

Calculate the materials price and usage variances using the columnar and formula approaches.

#### Solution Summary

Your tutorial is in excel, attached. Click in cells to see. This is now a template for future problems.

\$2.19