Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

تمرين 15

CALCULATING THE DIRECT MATERIALS PRICE VARIANCE AND THE DIRECT MATERIALS USAGE VARIANCE
Refer to Cornerstone Exercise 9-1. Lester's Oil and Lube Company provided the following information for the production of oil changes during the month of June:
Actual number of oil changes performed: 780
Actual number of quarts of oil used: 4,517 quarts
Actual price paid per quart of oil: $6.40
Standard price per quart of oil: $6.20
Required:
1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach.
2. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the graphical approach.
3. Calculate the total direct materials variance for oil for June.
4. What if the actual number of quarts of oil purchased in June had been 4,530 quarts, and the materials price variance was calculated at the time of purchase? What would be the materials price variance (MPV)? The materials usage variance (MUV)?