Accounting cost variance

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Standard cost per unit 3 pounds at $2 per unit

Actual cost per unit  2.5 pounds at $3 per unit 

6000 pounds of raw materials purchased during the month. 2,000 units were manufactured during the month and 5000 pounds of raw material were used in production. What is the direct material quantity variance? 

May 6th, 2015

3pounds =2 dollars

actual cost 2.5 pounds =3 dollars

6000/3 x 2=4000 dollars per unit

5000/2.5 x 3=6000 dollars per unit

total cost = 6000 + 4000

10,000 dollars per unit


May 6th, 2015

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May 6th, 2015
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