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    Monthly cost analysis - Brown Company

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    The following activity took place in Brown Company during May:

    Number of units produced.... 450 units
    Material purchased.... 1,500 feet
    Material used in production... 720 feet
    Cost per foot of material purchased... $3

    The standard cost card indicates that 1.5 feet of materials are allowed for each unit of product. The standard cost of the materials is $4 per foot.

    a. Complete the following analysis of direct materials cost for the month:

    Annual Quantity of Actual Quantity of Standard Quantity allowed
    Inputs at Actual Price Inputs, at Standard Price for Output, at Standard Price
    (AQ * AP) (AQ * SP) (SQ * SP)
    ____________ ____________ ____________
    ____________ ____________ ____________
    ____________ ____________ ____________

    ↑_____________________↑ ↑

    _____________ │
    _____________ │

    ↑____________________↑

    b. Redo the above analysis of direct materials cost for the month, using the following formulas:

    Materials price variance = AQ AP - SP)

    Materials quantity variance = SP (AQ - SQ)

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    The following activity took place in Brown Company during May:

    Number of units produced.... 450 units
    Material purchased.... 1,500 feet
    Material used in production... 720 feet
    Cost per foot of material purchased... $3

    The standard cost card indicates that 1.5 feet of ...

    Solution Summary

    This solution is comprised of a detailed explanation to complete the analysis of direct materials cost for Brown Company.

    $2.19

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