The standard cost of Product B manufactured by Pharrell Company includes 3.2 units of direct materials at $6.6 per unit. During June, 27,000 units of direct materials are purchased at a cost of $6.45 per unit, and 27,000 units of direct materials are used to produce 8,300 units of Product B.
(a)
Compute the total materials variance and the price and quantity variances.
| Total materials variance | $ |
Neither favorable nor unfavorableFavorableUnfavorable |
||
| Materials price variance | $ |
Neither favorable nor unfavorableFavorableUnfavorable |
||
| Materials quantity variance | $ |
UnfavorableFavorableNeither favorable nor unfavorable |
(b)
Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.70 and the quantity purchased and used is 27,000 units.
| Total materials variance | $ |
Neither favorable nor unfavorableFavorableUnfavorable |
||
| Materials price variance | $ |
FavorableNeither favorable nor unfavorableUnfavorable |
||
| Materials quantity variance | $ |
UnfavorableFavorableNeither favorable nor unfavorable |
