# Direct Materials Purchases Assignment

Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 730,000 candles for the year. Wax is required to produce a candle. Assume 12 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,600 pounds. The desired December 31 wax inventory is 12,600 pounds. If candle wax costs \$1.80 per pound, determine the direct materials purchases budget for the year. (One pound = 16 ounces.) Round all computed answers to the nearest whole dollar.

For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Direct Materials Purchases Budget For the Year Ending December 31 Pounds of wax required for production: Total units available Total pounds to be purchased Unit price Total direct materials to be purchased Direct Materials Variances Bellingham Company produces a product that requires seven standard pounds per unit. The standard price is \$4.5 per pound. If 3,600 units used 24,700 pounds, which were purchased at \$4.59 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance b. Direct materials quantity variance 9 ी ी c. Direct materials cost variance Factory Overhead Controllable Variance Bellingham Company produced 5,700 units of product that required 5 standard direct labor hours per unit. The standard variable overhead cost per unit is \$5.20 per direct labor hour. The actual variable factory overhead was \$153,680. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Get Accounting homework help today

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