The Following Direct Materials Variance Computations Are Incomplete

question 143

Essay

The following direct materials variance computations are incomplete. Fill in the missing values, and identify the direct materials flexible budget variance as favorable or unfavorable.
Direct materials price variance = ($? - $12.50)× 7,000 pounds = $3,500 U
Direct materials quantity variance = (? - 6,700 pounds)× $12.50 = ? U
Direct materials flexible budget variance = $?

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Definitions:

Clearing Times

The time period required for the settlement of financial transactions, from the moment of initiation to finalization.