F7 PR 10-46 (Algo) Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9)Rocky Mountain Camping Equipment, Incorporated, has established the following direct-material standards for its two products.Standard camping tentDeluxe backpacking tentStandard Quantity27 yards5 yardsStandard Price$ 12.50 per yard$ 8.80 per yardDuring March, the company purchased 4,100 yards of tent fabric for its standard model at a cost of $53,710. The actual Marchproduction of the standard tent was 110 tents, and 3,100 yards of fabric were used. Also during March, the company purchased1,100 yards of the same tent fabric for its deluxe backpacking tent at a cost of $9,570. The firm used 950 yards of the fabricduring March in the production of 190 deluxe tents.Required:1. Compute the direct-material purchase price variance and quantity variance for March.2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.

1. Direct-Material Variances for Rocky Mountain Camping Equipment (March)A. Standard Camping…

Answered: PR 10-46 (Algo) Direct-Material…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

7) Bear Mountain Sporting Goods has the following information from producing a specified quantity of camping kits: LO: 5 Actual fixed-MOH costs incurred on account $2,400 $2,500 Master Budget fixed-MOH costs Applied fixed-MOH costs Fixed-MOH Price Variance $2,400 $100 Favorable Fixed-MOH Volume Variance $100 Unfavorable Prepare the journal entries to record the actual fixed-MOH costs incurred, application of fixed-MOH to production, and to recognize the Fixed-MOH Variances.
Variance Computations and Explanations Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of 4 yards of fabric at $5 per yard. The standards call for 2 hours of assembly at $13 per hour. The following data were recorded for October, the first month of operations: Fabric purchased Fabric used in production of 1,700 tents Direct labor used 9,000 yards x $4.80 per yard 7,000 yards 3,600 hours x $13.50 per hour (a) Compute all standard cost variances for materials and labor. Materials price variance (usage basis) $ Materials price variance (purchase basis) $ Materials quantity variance $ Labor rate variance $ Labor efficiency variance $ ♦ ♦ ◆ ◆ (b) Which of the following is the most likely explanation for a favorable materials price variance and an unfavorable materials quantity variance? OQuantity discounts and the use of highly skilled production employees. OLast minute purchases of raw materials from…
DM & DL variances; journal entriesIn July, Zinger Corp. purchased 52,000 gallons of Numerol for $158,600 to use in the production of product #43MR7. During July, Zinger Corp. manufactured 10,140 units of product #43MR7. The following information is available about standard and actual quantities and costs: Standard for One UnitDirect material 4.8 gallons @ $3 per gallonDirect labor 20 minutes @ $9 per DLHActual Usage for JulyDirect material 47,710 gallonsDirect labor 3,354 DLHs @ $9.02 per DLH A. Prepare the journal entries for the material and labor variances.Note: Round amounts to the nearest whole dollar.Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit Answer Answer Answer Answer Answer Answer Answer Answer Answer To record material price variance Answer Answer Answer Answer Answer Answer Answer Answer Answer To record material quantity variance…
Exercise 16-48 (Algo) (Appendix used in requirement [c]) Comprehensive Cost Variance Analysis (LO 16-5, 6, 7) Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 93,000 tires for $36 each. Budgeted production was 97,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.35 hours at $15.00 5.25 Variable production overhead: 0.10 machine-hours at $15 per hour 1.50 Total variable costs $ 14.75 Fixed production overhead costs: Monthly budget $1,458,000 Fixed overhead is applied at the rate of $16.00 per tire. Actual production costs: Direct materials purchased and used: 397,000 pounds at $1.70 $ 674,900 Direct labor: 28,500 hours at $15.30 436,050 Variable overhead: 11,000 machine-hours at $15.70 per hour 172,700 Fixed overhead 1,459,000…
the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? Standard materials quantity per unit eTextbook and Media Save for Later pounds Attempts: 1 of 3 u Attempts: 0 of 3 used Submit Answer
Question: Calculating Material Variances: At Frigicor, The Standard Price For The M640 Electrical Relay (A Component Used In The Production ... Calculating Material Variances: At Frigicor, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $57. Standards call for 2.5 relays per unit of finished product. In July, the company purchased 150 relays for $8,900. The company used 104 relays in the production of 50 refrigeration units (4 relays were damaged in the installation process). Required: calculate the material price variance and the material quantity variance related to the M640 electrical relay. Indicate whether the variances are favorable or unfavorable. (show work)
Future Corporation has collected the following data for one of its products: Direct materials standard (3 pounds per unit 50.44/lb.) 51.32 per finished good Actual direct materials purchased 30,000 pounds Actual Direct Materials Used ( AQU) 34,000 pounds Actual Price (AP) paid per pound $0.64 How much is the direct materials price variance? Question content area bottom Part 1 A. 56,000 favorable B. $6,000 unfavorable C. 56,800 unfavorable D. 56,800 favorable
Variance Analysis, Revision of Standards,Journal EntriesThe Lubbock plant of Morril’s Small Motor Division produces a major subassembly for a 6.0horsepower motor for lawnmowers. The plant uses a standard costing system for productioncosting and control. The standard cost sheet for the subassembly follows:Direct materials (6.0 lbs. @ $5) $30.00Direct labor (1.6 hrs. @ $12) 19.20During the year, the Lubbock plant had the following actual production activity:a. Production of subassemblies totaled 50,000 units.b. A total of 260,000 pounds of raw materials was purchased at $4.70 per pound.c. There were 60,000 pounds of raw materials in beginning inventory (carried at $5 per lb.).There was no ending inventory.d. The company used 82,000 direct labor hours at a total cost of $1,066,000.The Lubbock plant’s practical activity is 60,000 units per year. Standard overhead rates are computed based on practical activity measured in standard direct labor hours.Required:1. CONCEPTUAL CONNECTION Compute…
Taussig Snow Removal's cost formula for its vehicle operating cost is $1,880 per month plus $394 per snow day. For the month of February, the company planned for activity of 13 snow days, but the actual level of activity was 14 snow days. The actual vehicle operating cost for the month was $7,250. The activity variance for vehicle operating cost in February would be closest to: Multiple Choice $248 U $394 U $394 $2481
Bonita Corporation prepared the following variance report. Fill in the missing amounts or letters in the report. (Round actual and standard price answers to 2 decimal places, e.g. 2.75.) Type of Materials Rogue11 Storm17 Beast29 Quantity Purchased lbs. 4.800 oz. 21,500 units $ Actual Price BONITA CORPORATION Variance Report-Purchasing Department For Week Ended January 9, 2022 $5.15 $0.35 $ Standard Price $4.95 $3.20 $4,820 Price Variance $1,200 Unfavorable $1,075 Favorable Explanation Price increase Rush order Bought larger quantity
A company developed the following per-unit standards for its product: 6 gallons of direct materials at $10 per gallon. Last month, 4400 gallons of direct materials were purchased for $42680. The direct materials price variance for last month was O $1050 unfavorable. O $42680 favorable. O $220 favorable. O $1320 favorable. Save for Later O (7 2 7 F9 Attempts: 0 of 1 used Submit Answer F10 ( PrtSc 55°F Clea
Required Information EX 10-28 (Algo) Cost Variance Investigation (LO 10-4) The director of cost management for Odessa Company uses a statistical control chart to help management determine when to investigate variances. The critical value is 1 standard deviation. The company incurred the following direct-labor efficiency variances during the first six months of the current year. January February March April May June The standard direct-labor cost during each of these months was $21,000. The controller has estimated that the firm's monthly direct-labor variances have a standard deviation of $970. EX 10-28 (Algo) Part 2: Which varlances will be investigated? $ 270 F 820 U 720 U 920 U 1,070 U 1,300 U Required: 2-a. Determine the cutoff value for investigation if the controller's rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost. 2-b. Based on the cutoff value, which month will have its direct-labor efficiency variance investigated? Complete…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS