Question

In: Accounting

Urban Corporation prepared the following variance report.

Urban Corporation prepared the following variance report.

Fill in the missing amounts or letters in the report. (Round actual and standard price answers to 2 decimal places, e.g. 2.75.)

URBAN CORPORATION
Variance Report—Purchasing Department
For Week Ended January 9, 2020

Type of
Materials

  

Quantity
Purchased

  

Actual
Price

  

Standard
Price

  

Price
Variance

  


Explanation
Rogue11     lbs.   $5.20   $4.95   $6,525                                                            Neither favorable nor unfavorableUnfavorableFavorable   Price increase
Storm17   4,500 oz.   $   $3.21   $630 Unfavorable   Rush order
Beast29   21,200 units   $0.35   $   $1,060 Favorable

Solutions

Expert Solution

Rogue11:

Actual Price = $5.20 Standard Price = $4.95 Actual Price > Standard Price. So, Price Variance is Unfavorable

Material Price variance = (Standard Price - Actual Price)*Actual quantity purchased

                        -6,525    = ( $4.95 - 5.20 ) x Actual quantity purchased

Quantity purchased          =  -,6525 /  -0.25

 Quanitty purhased  =  26,100 lbs [ Answer ]

 

Storm17:

Material Price variance = (Standard Price - Actual Price)*Actual quantity purchased

                        -630    = ( $3.21 - Actual price ) x 4,500

Actual price x 4500      =  $14,445 + 630

Actual price                  =  15,075 / 4500

Actual price = $3.35 [ Answer ]

 

Beast29:

 

Material Price variance = (Standard Price - Actual Price)*Actual quantity purchased

                           1,060    = ( Standard Price - 0.35 ) x 21,200

   Standard price x 21,200 =  7420 +1060

    Standard price =   8,480 / 21,200

   Standard price  = $0.4  [Answer ]

Actual Price = $5.20 Standard Price = $4.95 Actual Price > Standard Price. So, Price Variance is Unfavorabl

Ramesh R answered 3 years ago
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