BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Direct materials variances

 Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units required 36,000 pounds, which were purchased at 54.00 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance?

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

    • Direct materials price variance.
    • Direct materials quantity variance.

To determine: The direct materials price variance.

Explanation

The direct materials price variance is determined as follows:

Direct materials price variance = [(Actual priceStandard price)× Actual quantity]=[($4

(b)

To determine
The direct materials quantity variance.

(c)

To determine
The total direct materials cost variance.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe the six basic rights of consumers.

Foundations of Business (MindTap Course List)

Briefly describe five limitations of financial statement analysis.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

CURRENCY APPRECIATION Suppose that 1 Danish krone could be purchased in the foreign exchange market today for 0...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)