Camps Inc.has a standard cost system.The standards for direct materials for one of its products specify 4.4 ounces of a particular input per unit of output at a standard cost of $6.40 per ounce.The company has reported the following actual results for the product for May:
Required:
a.Compute the materials price variance for this input for May.
b.Compute the materials quantity variance for this input for May.

Question

Camps Inc.has a standard cost system.The standards for direct materials for one of its products specify 4.4 ounces of a particular input per unit of output at a standard cost of $6.40 per ounce.The company has reported the following actual results for the product for May:
  Required:
a.Compute the materials price variance for this input for May.
b.Compute the materials quantity variance for this input for May.

Quizplus · Accepted Answer

The Answer of Camps Inc.has a standard cost system.The standards for direct materials for one of its products specify 4.4 ounces of a particular input per unit of output at a standard cost of $6.40 per ounce.The company has reported the following actual results for the product for May:
  Required:
a.Compute the materials price variance for this input for May.
b.Compute the materials quantity variance for this input for May.

Camps IncHas a Standard Cost System