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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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Whats the formula?
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 ...

Solution Summary

In this solution we compute the total variance, price material variance, and the material quantity variance.

$2.19