Warr22e_IM_TM_Ch23 - Transparency Master 23-1 DIRECT...

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Unformatted text preview: Transparency Master 23-1 DIRECT MATERIALS VARIANCES Brass Works, Inc. produces brass lamps and gift products. Engineers at Brass Works have established the following direct materials standards to produce a brass candelabra: Direct Materials Standard: 1 pound of materials at $5 per pound During April, Brass Works used 1,050 pounds of dir- ect materials at an actual cost of $5.40 per pound to make 1,000 candelabras. Compute the following variances: (1) direct materials price variance, (2) direct materials quantity variance, and (3) total direct materials variance. Transparency Master 23-2 DIRECT MATERIALS VARIANCES Solution Materials Price Variance Actual Standard Actual Price/Unit Price/Unit Quantity Used ($5.40 $5.00) 1,050 = $420 unfavorable price variance Materials Quantity Variance Actual Standard Standard Quantity Used Quantity Price per Unit (1,050 1,000) $5 = $250 unfavorable quantity variance Total Materials Variance Price variance $420 unfavorable Quantity variance 250 unfavorable Total variance $670 unfavorable ( ) ( ) Transparency Master 23-3 DIRECT LABOR VARIANCES Brass Works, Inc. produces brass lamps and gift Brass Works, Inc....
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This note was uploaded on 04/20/2010 for the course BUSINESS Accounting taught by Professor Ebiohuche during the Spring '10 term at DeVry Manhattan.

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Warr22e_IM_TM_Ch23 - Transparency Master 23-1 DIRECT...

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