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b-22.05.xlsxProblem
| Monument Golf Markers produces granite tee box signs. These monuments are etched with an image of the golf hole, distance to green, and other information. Each monument typically requires 1,200 pounds of granite. The standard cost for granite is estimated at $260 per ton (2,000 pounds). During a recent month, 600 monuments were constructed. The company purchased and used 350 tons of material at a cost of $275 per ton.
Compute the total variance for materials, and determine how much is related to price and how much is related to quantity.
Larry Walther: Larry Walther: B-22.05 |
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Worksheet
| Materials variances: | |||
|
Larry Walther: Larry Walther: B-22.05 | Actual Material Cost | ||
| Actual quantity (tons) | - | ||
| Actual price | $ - | ||
| Actual cost of direct materials | $ - | ||
| Standard Material Cost | |||
| Output - number of monuments | - | ||
| Standard quantity of input per monument (60% of a ton) | - | ||
| Standard quantity of input to achieve output (tons) | - | ||
| Standard price per unit of input | $ - | ||
| Standard cost of direct materials | $ - | ||
| Total materials variance (standard cost v. actual cost) Larry Walther: Larry Walther: Excel provides numerous options for conditional formatting. In this case, cell B13 is noted to use “red” fonts if the number is negative. There are many opportunities in accounting to use conditional formats, especially when it is desired to call attention to numbers such as unfavorable variances. | $ - | ||
| Materials price variance: | |||
| Standard price | $ - | ||
| Actual price | - | ||
| $ - | |||
| Actual quantity | - | ||
| Materials price variance | $ - | ||
| Materials quantity variance: | |||
| Standard quantity | - | ||
| Actual quantity | - | ||
| - | |||
| Standard price | $ - | ||
| Materials quantity variance | $ - |
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