The following standards have been established for a raw material used to make product JN36:
$\begin{array}{ll}
\text {Standard quantity of material per unit of output } & \text { 6.3pounds } \
\text { Standard price of the material} & \text { \$15.50 per pound } \
\end{array}$

The following data pertain to a recent month's operations:
$$\begin{array} { l l }
\text { Actual material purchased } & 6,700 \text { pounds } \
\text { Actual cost of material purchased } & \$ 100,500 \
\text { Actual material used in production } & 6,400 \text { pounds } \
\text { Actual output } & 920 \text { mits of product JN36 }
\end{array}$$
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?

Question

The following standards have been established for a raw material used to make product JN36:
 $\begin{array}{ll}
  \text {Standard quantity of material per unit of output  } & \text {  6.3pounds } \
 \text {   Standard price of the material} & \text { \$15.50 per pound } \
\end{array}$
 
The following data pertain to a recent month's operations:
 $$\begin{array} { l l } 
\text { Actual material purchased } & 6,700 \text { pounds } \
\text { Actual cost of material purchased } & \$ 100,500 \
\text { Actual material used in production } & 6,400 \text { pounds } \
\text { Actual output } & 920 \text { mits of product JN36 }
\end{array}$$ 
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?

Quizplus · Accepted Answer

The Answer of The following standards have been established for a raw material used to make product JN36:
 $\begin{array}{ll}
  \text {Standard quantity of material per unit of output  } & \text {  6.3pounds } \
 \text {   Standard price of the material} & \text { \$15.50 per pound } \
\end{array}$
 
The following data pertain to a recent month's operations:
 $$\begin{array} { l l } 
\text { Actual material purchased } & 6,700 \text { pounds } \
\text { Actual cost of material purchased } & \$ 100,500 \
\text { Actual material used in production } & 6,400 \text { pounds } \
\text { Actual output } & 920 \text { mits of product JN36 }
\end{array}$$ 
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?

The Following Standards Have Been Established for a Raw Material