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Oceanside uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows:
Direct materials: 2 pound per unit; $10 per pound
Direct labor: 2 hours per unit; $16 per hour
Oceanside produced 4,000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 8,500 pounds of direct materials and actual total materials costs were $89,600.
Calculate the direct materials price variance and the direct materials efficiency variance. (please show work and answer)
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Calculate the beginning inventory in process for (a) direct material equivalent units and (b) the conversion equivalent units if 10,000 whole units are identified and they are 40% completed.
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