Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 45

A Direct materials variances
Lo-bed Company produces a product that requires two standard gallons per unit. The standard price is $20.00 per gallon. If 4,000 units required 8, 200 gallons, which were purchased at $19.75 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance
B Direct materials variances
Dvorak Company produces a product that requires five Standard pounds per unit. The standard price is $2.50 per pound. If 1,000 units required 4,500 pounds, which were purchased at $3.00 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance