Control the materials in its made-to-order sunglasses

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Reference no: EM132044632

Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $17.00. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,900 ounces of materials. The cost of the materials during July was $17.25 per ounce, and there were no beginning or ending inventories.

Required

a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses.

b. Determine the actual materials cost incurred for the completion of the 5,200 pairs of glasses and compute the total materials variance.

c. How much of the total variance was related to the price paid to purchase the materials?

d. How much of the difference between the answers to requirements (a) and (b) was related to the quantity of materials used?

Reference no: EM132044632

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