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Unformatted text preview: AC 420 Chapter 7 Name ____________________________________ For ex 7-15, you can use your own format, or you can complete the templates below. To use this template, fill in the boxes. Ex 7-15 part a What is the actual cost per quart? Hint: paid $10,080 for 4,200 quarts. What is the materials price variance? Hint: What is the actual price found above and the standard price? How many quarts were purchased? You can check yourself by filling in the yellow boxes below and the answer will appear in the blue box. Materials Variance Actual Qty (enter) 4200 Actual Qty 4200 Std Qty (enter) 4000 Actual Price (enter) 2.40 Std Price (enter) 2.50 Std Price 2.50 Total 10080 Total 10500 Total 10000 Material price var. 420 Materials Quantity var.-500 Total DM cost variance 2.4 Ex 7-15 part b What are the materials price variance and the materials quantity variance assuming the price variance is computed at time of purchase. Hint: The materials quantity variance will not change and will be shown in the orange box above. Hint: The quarts purchased , not the quarts used, will be used to compute the materials price variance. You can check yourself by filling in the yellow boxes below and the answer will appear in the blue box. Materials Variance Actual Qty (enter) 5000 Actual Qty 5000 Actual Price (enter) 2.40 Std Price (enter) 2.50 Total 12000 Total 12500 Material price var. 500 part c Who is responsible for controlling the materials price variance?...
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- Fall '11