Question - We make small elevators which can hold a maximum of ten passengers. One of the direct materials we use is industrial strength carpeting for the floor of the elevator. The direct material use is 8 square yards for each elevator. The standard cost of this caprpeting is 12 per square yard. Last month the carpeting was purchased for 11 square a yard and the production department used an average of 8.5 square yards of carpet to complete a total of 90 elevators.
a. Calculate direct materials price variance for the month?
b. Calculate direct material quantity variance for the month?
c. What is the total variance for the month?