Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $14.60. During the month, 8,000 chairs were manufactured, using 54,900 yards at a cost of $13.72 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance $ $ 48,312 16,060 64,372 Favorable Favorable Favorable
Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $14.60. During the month, 8,000 chairs were manufactured, using 54,900 yards at a cost of $13.72 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance $ $ 48,312 16,060 64,372 Favorable Favorable Favorable
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4E: The following data relate to the direct materials cost for the production of 50,000 automobile...
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![Ruby Company produces a chair for which the standard specifies 7 yards of material per unit.
The standard price of one yard of material is $14.60. During the month, 8,000 chairs were
manufactured, using 54,900 yards at a cost of $13.72 per yard.
Determine the following: Enter favorable variances as negative numbers.
a. Direct materials price variance
b. Direct materials quantity variance
c. Total direct materials cost variance
48,312
16,060
64,372
Favorable
Favorable
Favorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87c4a9ab-6de2-4c04-976c-73082ec534ac%2F4080b7e4-c069-443f-8718-9ed02feed695%2F2znboj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ruby Company produces a chair for which the standard specifies 7 yards of material per unit.
The standard price of one yard of material is $14.60. During the month, 8,000 chairs were
manufactured, using 54,900 yards at a cost of $13.72 per yard.
Determine the following: Enter favorable variances as negative numbers.
a. Direct materials price variance
b. Direct materials quantity variance
c. Total direct materials cost variance
48,312
16,060
64,372
Favorable
Favorable
Favorable
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