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The standard cost of Product B manufactured by Pharrell Company includes 3.8 units of direct materials at $6.30 per unit. During June, 27,000 units of direct materials are purchased at a cost of $6.20 per unit, and 27,000 units of direct materials are used to produce 7,000 units of Product B.
Question 1: Compute the total materials variance and the price and quantity variances.
Total materials variance:
Materials price variance:
Materials quantity variance:
Question 2: Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.35 and the quantity purchased and used is 26,700 units.
Total materials variance
Materials price variance
Materials quantity variance
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