Part #1 Lime Company planned to produce 5,100 units of Produ…

Questions

Pаrt #1 Lime Cоmpаny plаnned tо prоduce 5,100 units of Product Green using 5lbs of direct materials at a standard cost of $10 per lb. In actually producing 5,100 units of Product Green, Lime Company used 28,000 lbs. of direct materials costing a total of $266,000. REQUIRED:Part #1 Based on the above information, calculate each of the following and then indicate if it is favourable or unfavourable. a) Direct Material Price Variance (use $ sign and ,) {#1} b) Is the Direct Material Price Variance favourable or unfavourable? {#2} c) Direct Materials Quantity Variance (use $ sign and ,) {#3} d) Direct Materials Quantity Variance {#4} e) The purchasing manager says that he did a good job getting the materials at a lower cost per lb., is the correct? {#5}

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