Ayers Company Reports the Following Standards for Direct Materials for the Year

question 49

Essay

Ayers Company reports the following standards for direct materials for the year:
Standard cost per pound $4.75
Standard amount per finished good 8.5 pounds
During the year, 460,000 finished goods were produced. The direct materials price variance was $14,200 unfavorable. The direct materials flexible budget variance was $980 favorable.
Calculate the following items regarding direct materials for Ayers Company for the year:
a. Direct materials quantity variance
b. Standard quantity of direct materials for actual production
c. Actual pounds of direct materials used for actual production

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Definitions:

Measure Of Variability

A statistical indicator of how widely values in a data set vary around the mean or median.

Range

The difference between the highest and the lowest values in a data set.

Frequency Distribution

A tabular summary of data showing the number (frequency) of observations in each of several nonoverlapping categories or classes.

Interstate Highway

A network of controlled-access highways that form part of the National Highway System in the United States, designed for high-speed vehicular traffic.