Compute the total materials variance and the price and quantity variances
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The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.20 per unit. During June, 28,000 units of direct materials are purchased at a cost of $5.83 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.
Compute the total materials variance and the price and quantity variances:
total materials variance:
Price Material variance:
Material Quantity variance:
Repeat the question above, assuming the purchase price is $6.45 and the quantity purchased and used is 26,200 units.
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Solution Summary
In this solution we compute the total variance, price material variance, and the material quantity variance.
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The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.20 per unit. During June, 28,000 units of direct materials are purchased at a cost of $5.83 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.
Compute the total materials variance and the price and quantity ...
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