Uses a standard costing system

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Your company uses a standard costing system. At the beginning of the month, you budget to produce and sell 100 items. Actual units produced are 120. Standards for direct material are 4 lbs per unit at a standard price of $3 per pound. Actual material purchased and used was 450 lbs. Actual price paid was $2.90 lb. All units produced were sold. Consider direct material cost and calculate the following:

A) Static budget variance

b) Flexible budget variance

c) Sales volume variance

d) Efficiency variance

E) Price variance

label each variance with its name and favorable or not

Reference no: EM13752183

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