Ayers Company reports the following standards for direct materials for the year:
Standard cost per pound $4.75
Standard amount per finished good 8.5 pounds
During the year, 460,000 finished goods were produced. The direct materials price variance was $14,200 unfavorable. The direct materials flexible budget variance was $980 favorable.
Calculate the following items regarding direct materials for Ayers Company for the year:
a. Direct materials quantity variance
b. Standard quantity of direct materials for actual production
c. Actual pounds of direct materials used for actual production

Question

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The Answer of Ayers Company reports the following standards for direct materials for the year:
Standard cost per pound $4.75
Standard amount per finished good 8.5 pounds
During the year, 460,000 finished goods were produced. The direct materials price variance was $14,200 unfavorable. The direct materials flexible budget variance was $980 favorable.
Calculate the following items regarding direct materials for Ayers Company for the year:
a. Direct materials quantity variance
b. Standard quantity of direct materials for actual production
c. Actual pounds of direct materials used for actual production

Ayers Company Reports the Following Standards for Direct Materials for the Year