Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. Large Small Rubber 3 feet at $0.25 per foot 1.25 feet at $0.25 per foot Connector 1 at $0.02 1 at $0.02 At the beginning of the month, Ed Co. bought 24,000 feet of rubber for $6,720. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? Enter all amounts as positive numbers. If required round your answers to two decimal places. Direct materials price variance Direct materials uantity variance $ Total direct materials cost variance B. If they bought 10,000 connectors costing $210, what would the direct materials price variance be for the connectors? Round your intermediate calculations to three decimal places. Direct materials price variance $ C. If there was an unfavorable direct materials price variance of $125, how much did they pay per foot for the rubber? Round your answer to two decimal places. Actual price $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question B

Ed Co. manufactures two types of O rings, large and small.
Both rings use the same material but require different
amounts. Standard materials for both are shown.
Large
Small
Rubber
3 feet at $0.25 per foot 1.25 feet at $0.25 per foot
Connector
1 at $0.02
1 at $0.02
At the beginning of the month, Ed Co. bought 24,000 feet
of rubber for $6,720. The company made 3,000 large O
rings and 4,000 small O rings. The company used 14,500
feet of rubber.
A. What are the direct materials price variance, the direct
materials quantity variance, and the total direct materials
cost variance? Enter all amounts as positive numbers. If
required round your answers to two decimal places.
Direct materials price variance
2$
Direct materials quantity variance
$
Total direct materials cost variance
2$
B. If they bought 10,000 connectors costing $210, what
would the direct materials price variance be for the
connectors? Round your intermediate calculations to
three decimal places.
Direct materials price variance $
C. If there was an unfavorable direct materials price
variance of $125, how much did they pay per foot for the
rubber? Round your answer to two decimal places.
Actual price $
Transcribed Image Text:Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. Large Small Rubber 3 feet at $0.25 per foot 1.25 feet at $0.25 per foot Connector 1 at $0.02 1 at $0.02 At the beginning of the month, Ed Co. bought 24,000 feet of rubber for $6,720. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? Enter all amounts as positive numbers. If required round your answers to two decimal places. Direct materials price variance 2$ Direct materials quantity variance $ Total direct materials cost variance 2$ B. If they bought 10,000 connectors costing $210, what would the direct materials price variance be for the connectors? Round your intermediate calculations to three decimal places. Direct materials price variance $ C. If there was an unfavorable direct materials price variance of $125, how much did they pay per foot for the rubber? Round your answer to two decimal places. Actual price $
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