Titan Company uses standard costs to control materials costs…
Titan Company uses standard costs to control materials costs. The standards call for 3 pounds of materials for each finished unit produced. The standard cost per pound of materials is $2.00. During May, 5,000 finished units were manufactured, 10,000 pounds of materials were used. The price paid for materials was $2.25 per pound. There were no beginning or ending materials inventories. Required: Determine the flexible budget quantity (SQ) for the manufacture of 5,000 finished units. Compute the material quantity variance. Compute price quantity variance. Compute the total materials variance. Give one possible explanation for the variances computed in requirements 2 and 3.