Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50.
Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance.

Question

Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50.​
Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance.

Quizplus · Accepted Answer

The Answer of Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50.​
Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance.

Ruby Company Produces a Chair for Which the Standard Specifies