Pepp Company has the following information related to its production. Use the information below to...
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Accounting
Pepp Company has the following information related to its production. Use the information below to answer the required questions.
Pepp is in the business of producing tackle boxes. They expect that, to produce their 110 boxes, 10 pounds of aluminum will be needed at a price of $.0.60 per pound. Company finds that they produced 110 boxes using 11.5 pounds of aluminum per box at a cost of $0.62 per box.
REQUIRED:
1) What is the total Variance in the DM costs for the Tackle boxes?
2) What is the Price Variance in the DM costs?
3) What is the Quantity Variance in the DM costs?
Total Variance
Actual Costs - Standard Costs
Price Variance
Actual Costs - Budgeted Costs
Quantity Variance
Budgeted Costs - Standard Costs
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