Sizzle Company Uses a Standard Cost System to Collect Costs

question 156

Essay

Sizzle Company uses a standard cost system to collect costs related to the production of its "No-Stick" lawn chairs. The direct material for the chairs is teflon. Sizzle uses a standard direct material cost of $40.00 per chair (0.8 pounds of teflon × $50.00 per pound). During April, Sizzle purchased 2,100 pounds of teflon for $106,575. Sizzle used 1,750 pounds of this teflon in April to produce 1,800 lawn chairs.
Required:
Calculate Sizzle's materials price and materials quantity variances for April.

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Definitions:

Mode

The number that occurs the most often in a collection of data.

Squared Deviation

The square of the difference between an observed data value and the mean of the data set, used in variance and standard deviation calculations.

Mathematical Average

A statistical measure representing the sum of values divided by their quantity.

Modal Score

The most frequently occurring value in a set of data, which represents the mode.