Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. If 1,000 units required 4,500 pounds, which were purchased at $3.00 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance

Direct material price variance= $2,250 unfavorable

Direct material quantity variance= $1,250 favorable

Total variance= $1,000 unfavorable

Explanation:

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2.5 - 3)*4,500

Direct material price variance= $2,250 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 5*1,000= 5,000

Direct material quantity variance= (5,000 - 4,500)*2.5

Direct material quantity variance= $1,250 favorable

Total variance= 1,250 - 2,250= $1,000 unfavorable

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

the answer is a.

by: nicholas dooley