ITS Corporation produced 350 units of product ABCD. To produce this, the company used 1,800 kilograms of plastic which they bought at $12 per kilogram. On the other hand, the standard price per kilogram of plastic is set at $12.50. The production resulted to an unfavorable total direct material spending variance of $850. Using limited data, determine the following: Direct material quantity variance = Total standard kilograms allowed to produce the 350 units of product ABCD. = For requirement 1, Indicate whether the variance is favorable or unfavorable.

ITS Corporation produced 350 units of product ABCD. To produce this, the company used 1,800 kilograms of plastic which they bought at $12 per kilogram. On the other hand, the standard price per kilogram of plastic is set at $12.50. The production resulted to an unfavorable total direct material spending variance of $850. Using limited data, determine the following: Direct material quantity variance = Total standard kilograms allowed to produce the 350 units of product ABCD. = For requirement 1, Indicate whether the variance is favorable or unfavorable.

Name: ITS Corporation produced 350 units of product ABCD. To produce this, t
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: ITS Corporation produced 350 units of product ABCD. To produce this, the company used 1,800 kilograms of plastic which they bought at $12 per kilogram. On the other hand, the standard price per kilogram of plastic is set at $12.50.The production resu

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

See similar textbooks

Similar questions

The management of Golding Company has determined that the cost to investigate a variance produced by its standard cost system ranges from 2,000 to 3,000. If a problem is discovered, the average benefit from taking corrective action usually outweighs the cost of investigation. Past experience from the investigation of variances has revealed that corrective action is rarely needed for deviations within 8% of the standard cost. Golding produces a single product, which has the following standards for materials and labor: Actual production for the past 3 months follows, with the associated actual usage and costs for materials and labor. There were no beginning or ending raw materials inventories. Required: 1. What upper and lower control limits would you use for materials variances? For labor variances? 2. Compute the materials and labor variances for April, May, and June. Identify those that would require investigation by comparing each variance to the amount of the limit computed in Requirement 1. Compute the actual percentage deviation from standard. Round all unit costs to four decimal places. Round variances to the nearest dollar. Round variance rates to three decimal places so that percentages will show to one decimal place. 3. CONCEPTUAL CONNECTION Let the horizontal axis be time and the vertical axis be variances measured as a percentage deviation from standard. Draw horizontal lines that identify upper and lower control limits. Plot the labor and material variances for April, May, and June. Prepare a separate graph for each type of variance. Explain how you would use these graphs (called control charts) to assist your analysis of variances.
Longman Inc is a manufacturer of crystal glasses. The standard direct materials quantity is 0.8 pound per glass at a cost of $0.60 per pound. The actual result for one months’s production of 6,800 glasses was 1.1 pounds per glass, at a cost of $0.40 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U)
Brookman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.7 pound per glass at a cost of $0.50 per pound. The actual result for one month's production of 6,900 glasses was 1.2 pounds per glass, at a cost of $0.30 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Actual Cost Standard Cost Actual Quantity Direct Materials Cost Variance 0 50 0.30 $1,656 U Ex 8280
Brookman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.7 pound per glass at a cost of $0 50 per pound The actual result for one month's production of 6,900 glasses was 1.2 pounds per glass, at a cost of $0.30 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Actual Cost Standard Cost Actual Quantity Direct Materials Cost Variance 0.50 0.30 8280 $1,656 U
Jackson, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.8 pound per glass at a cost of $0.40 per pound. The actual result for one month's production of 7,400 glasses was 1.3 pounds per glass, at a cost of $0.20 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Direct Materials Cost Variance ( ( ) x Select the formula, then enter the amounts and compute the efficiency variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Direct Materials Efficiency Variance ( A % 10 4- & 9
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 16,100 units used 36,900 pounds, which were purchased at $3.60 per pound. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Jackson, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 1.0 pound per glass at a cost of $0.40 per pound. The actual result for one month's production of 7,100 glasses was 1.4 pounds per glass, at a cost of $0.30 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Direct Materials Cost Variance ) X ) X noce E Select the formula, then enter the amounts and compute the efficiency variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). ( Direct Materials Efficiency Variance K 11 Jacar II con
Sunny Corporation has collected the following data for one of its products: Direct materials standard (3 pounds per unit @ $0.40/lb.) Actual direct materials purchased Actual Direct Materials Used (AQU) Actual Price (AP) paid per pound How much is the direct materials price variance? O A. $1,610 unfavorable B. $2,240 favorable C. $1,610 favorable O D. $2,240 unfavorable $1.20 per finished good 32,000 pounds 23,000 pounds $0.47
Martin, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is1.0 pound per glass at a cost of $0.50 per pound. The actual result for one month's production of 6,500 glasses was 1.2 pounds per glass, at a cost of $0.30 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). ( Actual Cost - Standard Cost ) × Actual Quantity = Direct Materials Cost Variance
A company purchases 48000 pounds of materials. The materials price variance is $12000 favorable. What is the difference between the standard price and the actual price paid for the materials? $1.00 $4.00 $0.25 Cannot be determined from the data provided.
K Brookman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 1.0 pound per glass at a cost of $0.30 per pound. The actual result for one month's production of 7,300 glasses was 1.2 pounds per glass, at a cost of $0.10 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). ) x ) × Direct Materials Cost = Variance Select the formula, then enter the amounts and compute the efficiency variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Direct Materials Efficiency ) ✗ × = Variance
Tercer reports the following for one of its products. Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. Direct materials standard (4 lbs. @ $2 per lb.). $8 per finished unit Actual finished units produced. 60,000 units Actual direct materials used . 300,000 lbs. Actual cost of direct materials used. $540,000