The standard cost of product B manufactured by Waterway Company includes 3 units of direct materials at $5.55 per unit. During June, the company purchases 29,000 units of direct materials at a cost of $5.22 per unit and uses 29,000 units of direct materials to produce 9,500 units of product B. Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.72 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance Materials quantity variance

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The standard cost of product B manufactured by Waterway Company includes 3 units of direct materials at $5.55 per unit. During
June, the company purchases 29,000 units of direct materials at a cost of $5.22 per unit and uses 29,000 units of direct materials to
produce 9,500 units of product B.
Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.72 and the quantity
purchased and used is 28,000 units.
Materials variance
Materials price variance
Materials quantity variance
Transcribed Image Text:The standard cost of product B manufactured by Waterway Company includes 3 units of direct materials at $5.55 per unit. During June, the company purchases 29,000 units of direct materials at a cost of $5.22 per unit and uses 29,000 units of direct materials to produce 9,500 units of product B. Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.72 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance Materials quantity variance
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