Information concerning johnston co.'s direct materials costs is as follows: standard price per pound $6.45 actual quantity purchased 2,850 pounds actual quantity used in production 2,750 pounds units of product manufactured 700 materials purchase-price variance–favorable $855 budget data for the period: units to manufacture 1,000 units of direct materials 4,000 pounds the direct materials usage variance for the period, rounded to two decimal places, was: a. $713. b. $6.50 c. $6.12 d. $6.75 e. $615 f. $6.15

The correct answer is $322,5 favorable.

It used 50 pounds less than estimated for the number of units produced.

Explanation:

Giving the following information:

Standard price per pound $6.45

Actual quantity used in production 2,750 pounds

Units of product manufactured 700

Materials purchase-price variance–favorable $855

Budget data for the period:

Units to manufacture 1,000

Units of direct materials 4,000 pounds

First, we need to determine the standard quantity required.

Standard quantity= 4,000 pounds/ 1,000 units= 4 pounds per unit

Now, we can calculate the quantity variance:

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

Direct material quantity variance= (2,800 - 2,750)*6.45= 322.5 favorable

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate