Carolina Tile Company in the US manufactures and installs industrial tile flooring.In the current year,the company had anticipated producing and installing 80 000 tiles but actually produced and installed 90 000 tiles.The standard direct materials cost for each square foot of tile is $6.30 comprised of 3 pounds of material at a cost of $2.10 per pound.During the year,300 000 pounds of material were purchased out of which 280 000 pounds were used at a cost of $1.90 per pound.
Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Direct materials price variance
B. Direct materials usage variance

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The Answer of Carolina Tile Company in the US manufactures and installs industrial tile flooring.In the current year,the company had anticipated producing and installing 80 000 tiles but actually produced and installed 90 000 tiles.The standard direct materials cost for each square foot of tile is $6.30 comprised of 3 pounds of material at a cost of $2.10 per pound.During the year,300 000 pounds of material were purchased out of which 280 000 pounds were used at a cost of $1.90 per pound.
Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Direct materials price variance
B. Direct materials usage variance

Carolina Tile Company in the US Manufactures and Installs Industrial