curtailing costs at the good times company
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The Good Times Company’s budget for materials for the year is as follows:
The actual number of games produced was 12,000 games. Standard costs for each game were 3.5 pounds of material at a cost of $22.50 per pound. The actual costs for each game were 3 pounds of material at a cost of $25.00 per pound.
Individually compute the total material variance, the material price variance, and the material quantity variance. Discuss the results of your computations with your group members and determine what they mean. Prepare a report summarizing your findings and recommend key areas where changes should be considered.
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