QS 21-8 (Static) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ= Standard Quantity AP Actual Price SP Standard Price $ 8 per unit 300,000 pounds 60,000 units $540,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x +

QS 21-8 (Static) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ= Standard Quantity AP Actual Price SP Standard Price $ 8 per unit 300,000 pounds 60,000 units $540,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x x Standard Cost x x +

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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