Mcphail Inc.has a standard cost system.The standards for direct materials for one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per gram.The company has reported the following actual results for the product for September: Required:
a.Compute the materials price variance for this input for September.
b.Compute the materials quantity variance for this input for September.

Question

Mcphail Inc.has a standard cost system.The standards for direct materials for one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per gram.The company has reported the following actual results for the product for September:  Required:
a.Compute the materials price variance for this input for September.
b.Compute the materials quantity variance for this input for September.

Quizplus · Accepted Answer

The Answer of Mcphail Inc.has a standard cost system.The standards for direct materials for one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per gram.The company has reported the following actual results for the product for September:  Required:
a.Compute the materials price variance for this input for September.
b.Compute the materials quantity variance for this input for September.