管理会计的案例教村.pptVIP

1,700 lbs. 1,700 lbs. 1,500 lbs. × × × $3.90 per lb. $4.00 per lb. $4.00 per lb. = $6,630 = $ 6,800 = $6,000 Price variance$170 favorable Quantity variance$800 unfavorable Actual Quantity Actual Quantity Standard Quantity × × ×  Actual Price Standard Price Standard Price Material Variances Summary Zippy Material Variances Hanson purchased and used 1,700 pounds. How are the variances computed if the amount purchased differs from the amount used? The price variance is computed on the entire quantity purchased. The quantity variance is computed only on the quantity used. Hanson Inc. has the following material standard to manufacture one Zippy: 1.5 pounds per Zippy at $4.00 per pound Last week 2,800 pounds of material were purchased at a total cost of $10,920, and 1,700 pounds were used to make 1,000 Zippies. Material Variances Continued Zippy Actual Quantity Actual Quantity  Purchased Purchased × ×  Actual Price Standard Price 2,800 lbs. 2,800 lbs.  × ×  $3.90 per lb. $4.00 per lb. = $10,920 = $11,200 Price variance$280 favorable Price variance increases because quantity purchased increases. Material Variances Continued Zippy Actual Quantity  Used Standard Quantity  × ×