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The Following Standards Have Been Established for a Raw Material

Question 4

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The following standards have been established for a raw material used to make product JN36:  Standard quantity of the material per  unit of output 6.3 pounds  Standard pric e of the material $15.50 per  pound \begin{array}{|l|r|l|}\hline \begin{array}{l}\text { Standard quantity of the material per } \\\text { unit of output }\end{array} & 6.3 & \text { pounds } \\\hline \text { Standard pric e of the material } & \$ 15.50 & \begin{array}{l}\text { per } \\\text { pound }\end{array} \\\hline\end{array}
The following data pertain to a recent month's operations:

The following standards have been established for a raw material used to make product JN36: \begin{array}{|l|r|l|} \hline \begin{array}{l} \text { Standard quantity of the material per } \\ \text { unit of output } \end{array} & 6.3 & \text { pounds } \\ \hline \text { Standard pric e of the material } & \$ 15.50 & \begin{array}{l} \text { per } \\ \text { pound } \end{array} \\ \hline \end{array} The following data pertain to a recent month's operations: Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month?
Required:
a.What is the materials price variance for the month?
b.What is the materials quantity variance for the month?

Correct Answer:

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a.Materials price variance = (AQ × AP)-...

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