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26 July, 09:49

Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can. During the month of April, 304,000 cans were produced using 1,243,000 ounces of aluminum. The actual cost of aluminum was $0.17 per ounce and the standard price was $0.07 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the materials price and usage variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Materials Price Variance $ Material Usage Variance

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  1. 26 July, 10:03
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    Instructions are listed below.

    Explanation:

    Giving the following information:

    Production of 12-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can. During April, 304,000 cans were produced using 1,243,000 ounces of aluminum. The actual cost of aluminum was $0.17 per ounce and the standard price was $0.07 per ounce.

    Direct material price variance = (standard price - actual price) * actual quantity

    Direct material price variance = (0.07 - 0.17) * 1,243,000 = $124,300 unfavorable

    Direct material quantity variance = (standard quantity - actual quantity) * standard price

    Direct material quantity variance = (1,337,600 - 1,243,000) * 0.07 = $6,622 favorable
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