Question

Materials Variances Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $16.25. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,800 ounces of materials. The cost of the materials during July was $17.00 per ounce, and there were no beginning or ending inventories. Required a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses.

Answer 1

Direct material flexible budget= $159,250

Step-by-step explanation:

Giving the following information:

The standard cost per ounce of material is $16.25.

Actual quantity= 9,800 ounces

The flexible budget employs the standard cost for the actual quantity:

Direct material flexible budget= 16.25*9,800

Direct material flexible budget= $159,250