Hsu Company produces a part with a standard of 5 yards of material per unit. The standard price of one yard of material is $8.50. During the month, 8,800 parts were manufactured, using 45,700 yards of material at a cost of $8.30.
Determine:
(a) price variance
(b) quantity variance
(c) cost variance.

Question

Hsu Company produces a part with a standard of 5 yards of material per unit. The standard price of one yard of material is $8.50. During the month, 8,800 parts were manufactured, using 45,700 yards of material at a cost of $8.30. 
Determine: 
(a) price variance 
(b) quantity variance
(c) cost variance.

Quizplus · Accepted Answer

The Answer of Hsu Company produces a part with a standard of 5 yards of material per unit. The standard price of one yard of material is $8.50. During the month, 8,800 parts were manufactured, using 45,700 yards of material at a cost of $8.30. 
Determine: 
(a) price variance 
(b) quantity variance
(c) cost variance.

Hsu Company Produces a Part with a Standard of 5