Turrubiates Corporation makes a product that uses a material with the following standards standard quantity standard price 8.1 liters per unit $ 2.60 per 1liter $21.06 per unit Standard cost The company budgeted for production of 3,900 units in April, but actual production was 4,000 units The company used 33,300 liters of direct material to produce this output The company purchased 20,200 liters of the direct material at $270 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: Multiple Choice $2430 U $2.340 U $2.430 F

Turrubiates Corporation makes a product that uses a material with the following standards standard quantity standard price 8.1 liters per unit $ 2.60 per 1liter $21.06 per unit Standard cost The company budgeted for production of 3,900 units in April, but actual production was 4,000 units The company used 33,300 liters of direct material to produce this output The company purchased 20,200 liters of the direct material at $270 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: Multiple Choice $2430 U $2.340 U $2.430 F

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires 5 direct labor hours at standard. Overhead is applied on the basis of direct labor hours. The budgeted overhead for the coming year is as follows: At normal volume. During the year, Moleno produced 118,600 units, worked 592,300 direct labor hours, and incurred actual fixed overhead costs of 2,150,400 and actual variable overhead costs of 1,422,800. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. 2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? 3. CONCEPTUAL CONNECTION Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each. 4. CONCEPTUAL CONNECTION Compute the variable overhead spending and efficiency variances. Discuss the significance of each.
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