27th Edition
WARREN + 5 others
ISBN: 9781337272094




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

Direct materials variances

 Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 580 tablets during December. However, due to LCD defects, the company actually used 600 LCD displays during December. Each display has a standard cost of $15.00. Six hundred LCD displays were purchased for December production at a cost of $8,550.

 Determine the price variance, quantity variance, and total direct materials cost variance for December.

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 price variance for the month of December.


The price variance is determined as follows:

Direct materials price variance = [(Actual priceStandard price)× Actual quantity]=[($14.25 (1)$15.00)×600]=$0

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

Explain how absolute advantage and comparative advantage differ.

Principles of Economics (MindTap Course List)

YIELD CURVES Yields on U.S. Treasury securities were as follows: Term Rate 6 months 5.1% 1 year 5.5 2 years 5.6...

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

Identify the sources of the information needed to prepare the balance sheet.

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