Buerhle Company purchased (at a cost of $11,500) and used 2,350 pounds of materials during May. Buerhle's standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5 per pound. Production in May was 1,100 units.
Compute the total, price, and quantity variances for materials.
Total materials variance $
Materials price variance $
Materials quantity variance $
Solution to your posted problem is provided herewith. It is also provided in a separate word document attached in the format given by you.
Computation of Direct Material variances
Standard Quantity or Usage for actual output achieved =
Actual output X Standard input allowed per unit of output
Total materials variance, materials price variance and materials quantity variance is determined.