Ask Question
5 August, 02:00

Exercise 23-5 Partially correct answer. Your answer is partially correct. Try again. The standard cost of Product B manufactured by Pharrell Company includes 3.1 units of direct materials at $6.1 per unit. During June, 26,900 units of direct materials are purchased at a cost of $5.85 per unit, and 26,900 units of direct materials are used to produce 8,500 units of Product B. (a) Compute the total materials variance and the price and quantity variances.

+3
Answers (1)
  1. 5 August, 02:08
    0
    price variance 6,725 favorable

    quantity variance 3,355 unfavorable

    Explanation:

    Materials variance:

    price:

    actual units x (std - actual price)

    26,900 (6.1-5.85) = 6,725

    quantity

    (standard quantity - actual quantity) x std price

    (8,500 x 3.1 - 26,900) x 6.1 = - 3,355
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Exercise 23-5 Partially correct answer. Your answer is partially correct. Try again. The standard cost of Product B manufactured by ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers