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Question - Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.55 per pound. 15,900 units used 35,700 pounds, which were purchased at $3.70 per pound.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct materials price variance
b. Direct materials quantity variance
c. Direct materials cost variance
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