Krumple inc. produces aluminum cans. production of 12-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can. during the month of april, 304,000 cans were produced using 1,243,000 ounces of aluminum. the actual cost of aluminum was $0.17 per ounce and the standard price was $0.07 per ounce. there are no beginning or ending inventories of aluminum. required: calculate the materials price and usage variances using the columnar and formula approaches. enter amounts as positive numbers and select favorable or unfavorable. materials price variance $ material usage variance

Instructions are listed below.

Explanation:

Giving the following information:

Production of 12-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can. During April, 304,000 cans were produced using 1,243,000 ounces of aluminum. The actual cost of aluminum was $0.17 per ounce and the standard price was $0.07 per ounce.

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

Direct material price variance= ( 0.07 - 0.17)*1,243,000= $124,300 unfavorable

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

Direct material quantity variance= (1,337,600 - 1,243,000)*0.07= $6,622 favorable

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.