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In reviewing activity for july the controller of mathis inc., collected the following data concerning direct materials:

Actual production $103,000 units
Direct materials purchased (actual) $1,642,800
Standard cost of materials purchased $1,554,000
Standard direct materials costs per unit produced 14
Standard price times actual amount of materials used $1,405,950

Required:
Compute the direct materials cost variances.

Sagot :

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Answer:

$36,400 U

Explanation:

Actual costs = $ 1,643,800

Actual inputs at standard price = $ 1,556,500

Price variance = ($ 1,556,500 – $1,643,800)

                       = $87,300 Unfavorable

Actual inputs at standard price = $ 1,408,450

Flexible budget (Standard Allowed for Good Output):

= $14.1 × 103,500

= $1,459,350

Efficiency variance = ($1,459,350 - $1,408,450)

                               = $50,900 Favorable

Direct materials cost variances:

=  Price variance - Efficiency variance

=$87,300 U – $50,900 F

= $36,400 U

Explanation:brainlist pls

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