Acc349 Managerial Accounting: E11-5 The standard cost of Product B manufactured by TLC Company

Acc349 Cost / Managerial Accounting

E11-5
The standard cost of Product B manufactured by TLC Company includes three units of direct materials at $5.00 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.70 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.

Instructions:
(a) Compute the total materials variance and the price and quantity variances.
(b) Repeat (a), assuming the purchase price is $5.20 and the quantity purchased and used is 26,200 units.
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