Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 16,100 units used 36,900 pounds, which were purchased at $3.60 per pound. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 16,100 units used 36,900 pounds, which were purchased at $3.60 per pound. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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