Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. Large Small Rubber 3 feet at $0.20 per foot 1.25 feet at $0.20 per foot Connector 1 at $0.02 1 at $0.02 At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $7,250. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,600 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? Enter all amounts as positive numbers. If required round your answers to two decimal places. Direct materials price variance $fill in the blank 1 Direct materials quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5 B. If they bought 9,000 connectors costing $190, what would the direct materials price variance be for the connectors? Round your intermediate calculations to three decimal places. Direct materials price variance $fill in the blank 7 C. If there was an unfavorable direct materials price variance of $120, how much did they pay per foot for the rubber? Round your answer to two decimal places. Actual price $fill in the blank 9

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 2CMA

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Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown.

	Large	Small
Rubber	3 feet at $0.20 per foot	1.25 feet at $0.20 per foot
Connector	1 at $0.02	1 at $0.02

At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $7,250. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,600 feet of rubber.

A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? Enter all amounts as positive numbers. If required round your answers to two decimal places.

Direct materials price variance	$fill in the blank 1
Direct materials quantity variance	$fill in the blank 3
Total direct materials cost variance	$fill in the blank 5

B. If they bought 9,000 connectors costing $190, what would the direct materials price variance be for the connectors? Round your intermediate calculations to three decimal places.

Direct materials price variance

$fill in the blank 7

C. If there was an unfavorable direct materials price variance of $120, how much did they pay per foot for the rubber? Round your answer to two decimal places.

Actual price

$fill in the blank 9

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