Cooper Company has a direct material standard of 2 gallons of input at a cost of
ID: 2412428 • Letter: C
Question
Cooper Company has a direct material standard of 2 gallons of input at a cost of $10.50 per gallon. During July, Cooper Company purchased and used 6,650 gallons, paying $46,700. The direct materials quantity variance was $735 unfavorable. How many units were produced?
Scarlett Company has a direct material standard of 3 gallons of input at a cost of $6 per gallon. During July, Scarlett Company purchased and used 7,520 gallons. The direct material quantity variance was $660 unfavorable and the direct material price variance was $6,016 favorable. What price per gallon was paid for the purchases?
Cooper Company has a direct material standard of 2 gallons of input at a cost of $10.50 per gallon. During July, Cooper Company purchased and used 6,650 gallons, paying $46,700. The direct materials quantity variance was $735 unfavorable. How many units were produced? 6,650 units 3197 units 3.290 units O 3,390 unitsExplanation / Answer
Q1. Answer is 3290 units Explanation: Std qty per unit of output: 2 gallons Std cost per gallon: $10.50 per gallon Actual Qty used: 6650 gallons Material Qty variance: 735 U Material Qty variance: Std cost per unit (Sd Qty - Aactual Qty) 735 U = 10.50 (Std qty-6650 ) Std Qty allowed for actual Output: 6580 units Actual Output (6580/2): 3290 Q2. Answer is $ 5.20 Explanation: Std Qty per unit of output: 3 gallons Std price per gallon: 6.00 Actual purchased and used: 7520 Material price Variance = 6016 F Material Price variance = Actual Qty ( Std price-Actual Price) 6016 F = 7520 (6.00- Actual price) Actual Price : $ 5.20 per gallon