Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.

Determine:
(a) price variance
(b) quantity variance
(c) total cost variance.

Question

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard. 
 
Determine: 
(a) price variance 
(b) quantity variance 
(c) total cost variance.

Quizplus · Accepted Answer

The Answer of Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard. 
 
Determine: 
(a) price variance 
(b) quantity variance 
(c) total cost variance.

Ruby Company Produces a Chair That Requires 5 Yards of Material