Question:
MyTime, Inc., produces electronic timepieces. The company uses mini-LCD displays for its products. Each timepiece uses one display. The company produced 540 timepieces during October. However, due to LCD defects, the company actually used 570 LCD displays during October. Each display has a standard cost of $8.60. Five hundred seventy LCD displays were purchased for October production at a cost of $4,560.
Determine theprice variance,quantity variance, and total direct materialscost variance for October. Use the minus sign to enter favorable variances as negative numbers.
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Price variance:
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$
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Select Favorable Variance Unfavorable Variance Item 2
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Quantity variance:
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$
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Select Favorable Variance Unfavorable Variance Item 4
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Total direct materials cost variance:
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$
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Select Favorable Variance Unfavorable Variance Item 6
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