Question: A company produces the follow incomplete information regarding actual and budgeted direct material and production:
Budgeted Actual
Units produced 1,500 UNITS ? units
Material used 6,000 kg 6,640 kg
Price pad per kg $? $2.10
The following variances are known
Material price variance $664 U
Material flexible variance $1,144 U
Material volume variance $800 U
1. What is the budgeted price per kg?
2. What is the efficiency variance for direct materials?
3. What is the actual number of units produced?