Question

Exercise 23-5 Partially correct answer. Your answer is partially correct. Try again. The standard cost of Product B manufactured by Pharrell Company includes 3.1 units of direct materials at $6.1 per unit. During June, 26,900 units of direct materials are purchased at a cost of $5.85 per unit, and 26,900 units of direct materials are used to produce 8,500 units of Product B. (a) Compute the total materials variance and the price and quantity variances.

Answer 1

Answer:

price variance 6,725 favorable

quantity variance 3,355 unfavorable

Explanation:

Materials variance:

price:

actual units x (std - actual price)

26,900 (6.1-5.85) =6,725

quantity

(standard quantity - actual quantity) x std price

(8,500 x 3.1 - 26,900) x 6.1 = -3,355