Total Materials Variance Krumple Inc. produces aluminum cans. Production of 12-o

Question

Total Materials Variance Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.7 ounces of aluminum per can. During the month of April, 450,000 cans were produced using 1,875,000 ounces of aluminum. The actual cost of aluminum was $0.10 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the total variance for aluminum for the month of April. Enter amount as a positive number and select Favorable or Unfavorable. Unfavorable

Explanation / Answer

it is unfavourable

Material Cost variance=MPV+MUV

=-75000+19200

=-55800

unfavourable

Material usage variance    =(SQ-AQ used)*SP    =(4.7*450000-1875000)*.08 19200 It is favourable Material price Variance    =(AR-SR)*AQ    =(.08-.04)*1875000 75000

it is unfavourable

Material Cost variance=MPV+MUV

=-75000+19200

=-55800

unfavourable

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---