Analysis of direct materials cost


Discuss the below;

Q: Expireall Corporation is in the finishing business. The following data took place during September:

Number of units produced 500 units

Material purchased 1,500 feet

material used in production 1,050

Cost per foot of material per purchase $5.00

The standard cost card indicates that 2.0 feet are used in the production of each unit. The standard cost of each material is $4.50 per foot.

A. Complete the following analysis of direct materials cost for the month of Sept.

Actual quantity of inputs at actual price

Actual quantity of inputs at standard price

Standard quantity allowed for output at standard price

B. Redo the above analysis for direct material for the month of september using the following formulas:

Materials price variance = AQ (AP - SP) =

Materials quantity Variance = Sp (Aq - SQ) =

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Basic Statistics: Analysis of direct materials cost
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