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Unformatted text preview: difference between the actual and standard price per unit. The computation in this case is 4,200 × ($3.10 - $3.00) = $420 U. Illustration 22-12 shows the formula for the materials quantity variance and the calculation for Xonic, Inc. Illustration 22-12 Formula for materials quantity variance Thus, for Xonic, Inc., the materials quantity variance is $600 ($12,600 - $12,000) unfavorable. Helpful Hint The alternative formula is: The price variance can also be computed by applying the standard price to the difference between actual and standard quantities used. The computation in this example is $3.00 × (4,200 - 4,000) = $600 U. The total materials variance of $1,020 U, therefore, consists of the following. Illustration 22-13 Summary of materials variances...
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- Fall '11
- Variance, The Alternative, Materials quantity variance, total materials variance, Xonic