High School

We appreciate your visit to Dillon has a standard of 1 5 pounds of materials per unit at 6 per pound for producing 2 000 units He used 3 100. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound, for producing 2,000 units. He used 3,100 pounds of materials at a total cost of $18,135.

Dillon's materials price variance is: ______.

Answer :

Dillon's material price variance is $600. This variance can be caused by factors such as fluctuations in material prices or purchasing materials at a higher or lower cost than anticipated.

Dillon's material price variance can be calculated using the formula: Material Price Variance = (Actual Quantity of Materials Used × Actual Price per Unit) - (Standard Quantity of Materials Allowed × Standard Price per Unit).

In this case, we are given:
Actual Quantity of Materials Used = 3,100 pounds
Actual Price per Unit = $6 per pound
Standard Quantity of Materials Allowed = 2,000 units × 1.5 pounds per unit = 3,000 pounds
Standard Price per Unit = $6 per pound

Now we can calculate the material price variance:
Material Price Variance = (3,100 pounds × $6 per pound) - (3,000 pounds × $6 per pound)
= ($18,600) - ($18,000)
= $600

Therefore, Dillon's material price variance is $600.

The material price variance indicates the difference between the actual cost of materials used and the standard cost that should have been incurred. In this case, Dillon's actual cost of $18,135 is $600 higher than the standard cost of $17,535 (calculated as 3,000 pounds × $5.85 per pound, which is the standard price per pound based on the given information). This variance can be caused by factors such as fluctuations in material prices or purchasing materials at a higher or lower cost than anticipated.

To know more about variance visit-

https://brainly.com/question/31432390

#SPJ11

Thanks for taking the time to read Dillon has a standard of 1 5 pounds of materials per unit at 6 per pound for producing 2 000 units He used 3 100. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada