Again, I am putting together because the questions are related... Use the follow

Question

Again, I am putting together because the questions are related...

Use the following information for problems 16, 17 and 18:

J & C Electronics, Inc. gathered the following direct materials cost information for the month of March:

The direct materials inventory variance is:

$4,250F
      $4,425U
      $6,800F
      $7,080U

Explanation / Answer

Hi,

Please find the answers as follows:

Direct Material Price Variance = Actual Quantity*(Actual Rate - Standard Rate) = 34700*(8.5 - 8.85) = 12145 (F)

Direct Material Usage Variance = Standard Rate*(Actual Quantity Used - Standard Quantity) = 8.85*(33900 - 34400) = 4425 (F)

Thanks.

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