Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $17.00. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,900 ounces of materials. The cost of the materials during July was $17.25 per ounce, and there were no beginning or ending inventories. Required a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses. $Answer b. Determine the actual materials cost incurred for the completion of the 5,200 pairs of glasses and compute the total materials variance. $Answer o actual materials cost $Answer 0 Answer F total materials variance c. How much of the total variance was related to the price paid to purchase the materials? $Answer 2,475 Answer U d. How much of the difference

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses.
The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of
material is $17.00. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,900
ounces of materials. The cost of the materials during July was $17.25 per ounce, and there were no
beginning or ending inventories. Required a. Determine the flexible budget materials cost for the
completion of the 5,200 pairs of glasses. $Answer b. Determine the actual materials cost incurred for the
completion of the 5,200 pairs of glasses and compute the total materials variance. $Answer 0 actual
materials cost $Answer 0 Answer F total materials variance c. How much of the total variance was related
to the price paid to purchase the materials? $Answer 2,475 Answer U d. How much of the difference
between the answers to requirements (a) and (b) was related to the quantity of materials used? (Hint:
Compute materials quantity variance.) $Answer o Answer F
Transcribed Image Text:Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $17.00. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,900 ounces of materials. The cost of the materials during July was $17.25 per ounce, and there were no beginning or ending inventories. Required a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses. $Answer b. Determine the actual materials cost incurred for the completion of the 5,200 pairs of glasses and compute the total materials variance. $Answer 0 actual materials cost $Answer 0 Answer F total materials variance c. How much of the total variance was related to the price paid to purchase the materials? $Answer 2,475 Answer U d. How much of the difference between the answers to requirements (a) and (b) was related to the quantity of materials used? (Hint: Compute materials quantity variance.) $Answer o Answer F
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