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    Total Materials Variance and Materials Price Variance

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    Question 6
    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 $

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    Solution Preview

    Dear student,

    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

    Preliminary working:

    Standard Quantity or Usage for actual output achieved =
    Actual output X Standard input allowed per unit of output

    Solution Summary

    Total materials variance, materials price variance and materials quantity variance is determined.