Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.75 per pound. 16,000 units used 35,800 pounds, which were purchased at $3.90 per pound. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ b. Direct materials quantity variance $ c. Direct materials cost variance $
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.75 per pound. 16,000 units used 35,800 pounds, which were purchased at $3.90 per pound. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ b. Direct materials quantity variance $ c. Direct materials cost variance $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1BE: Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds...
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Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.75 per pound. 16,000 units used 35,800 pounds, which were purchased at $3.90 per pound.
What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| a. Direct materials price variance | $ |
|
| b. Direct materials quantity variance | $ |
|
| c. Direct materials cost variance | $ | |
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