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)

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)

Name: Question: Calculating Material Variances: At Frigicor, The Standard P
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Question: Calculating Material Variances: At Frigicor, The Standard PriceFor The M640 Electrical Relay (A Component Used In The Production ...Calculating Material Variances: At Frigicor, the standard price for the M640 electrical relay (a componentu

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

Variance Analysis At the beginning of the year Diamond Company had the following standard cost sheet for one of its products: Fixed Overhead rate is based on practical capacity of 250,000 units. For the year 2022, the company has produced 160,000 units, with the following actual data: Direct Material purchased 33,000 grams at total cost $198, 000 Ending inventory of direct materials was 2, 000 grams Direct labor used was 4, 400 hours for $79,200 Variable OH cost was $70, 400, Fixed OH cost was $65,000 Required: Material Price and Usage Variance (Assuming no beginning inventory of Direct Material) Labor Rate and Efficiency Variance Variable Overhead Spending and Efficiency Variance Fixed Overhead Spending and Volume Variance (*Note: State whether the variance is favorable or unfavorable)
1. A quantity of a particular raw material was purchased for $43,250. The standard cost of the material was $2.00 per kilogram and there was an unfavorable materials price variance of $3,250. How many kilograms were purchased? 2. The standard direct material cost to produce a unit of Lem is 4 meters of material at $2.50 per meter. During May of the current year, 4,200 meters of material costing $10,080 were purchased and used to produce 1,000 units of Lem. What was the material price variance for May?
Joyous Company purchases 12,000 pounds of materials. The materials price variance is P6,000 favorable. What is the difference between the standard and actual price paid for the materials? A. 1.00 B. 0.50 C. 2.00 D. 6.00
DRS Manufacturing has the following standards for one of its products: Production Costs Direct materials (2 meter @ RM5) RM10 Direct labor (0.5 hour @ RM10) RM5 During the most recent year, the following actual results were recorded: Production Costs Production 6,000 units Direct materials (11,750 meter purchased and used) RM61,100 Direct labor (2,900 hours) RM29,580 required (i) Interpret the materials price and usage variances. (ii) Interpret the labor rate and efficiency variances.
At Elkhardt, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $52. Standards call for 3.0 relays per unit of finished product. In July, the company purchased 145 relays for $8,700. The company used 108 relays in the production of 53 refrigeration units (4 relays were damaged in the installation process).Calculate the material price variance and the material quantity variance related to the M640 electrical relay. Indicate whether the variances are favorable or unfavorable. (Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.) Material Price Variance $enter a dollar amount unfavorable, favorable, or neither Material Quantity Variance $enter a dollar amount unfavaorable, favorabloe, or neither select an option
Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to: Select one: a. $2,123 U b. $292 F c. $2,123 F d. $292 U
Cullumber Creations purchased 9200 feet of copper tubing at a price of $2.30 per foot and used 8900 feet during the period. The standard quantity allowed for the units produced is 8700 and the standard price of the copper tubing is $3.10 per foot. What is Cullumber Creations' direct materials quantity variance for the period? O $930 unfavorable O $1550 unfavorable O $620 unfavorable O $460 unfavorable
The following data relate to product no. 89 of Des Moines Corporation: Direct material standard: 3 square feet at $2.50 per square foot Direct material purchased: 30,000 square feet at $2.60 per square foot Direct material consumed: 29,200 square feet Manufacturing activity: 9,600 units completed Assume that the company computes variances at the earliest point in time. The direct-material purchase price variance is: rev: 11_12_2015_Qc_cs-33148 $2.880U. $2,920F. $2,920U. $3,000F. $3,000U.
8. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the production during the current month. The standard price for these raw materials is $5.2 per unit. How much is the materials price variance for the current month if Company S analyzes the variance at the point of purchase? $200 favorable O $200 unfavorable O $700 favorable $700 unfavorable
Yong Trading has the following standard cost for its product: Direct material - 5 kg x $28/kg Direct labour - 6.5 hours x $33/hour Additional information for the month of January 2020: Units made - 1,300 Direct material bought - 2,450 kg for $63,700 Direct material used - 7,100 kg Direct labour - 6,300 hours (direct labour cost of $195,300 Requirements: a ) Calculate 1)Direct material price variance 2)Direct material quantity variance 3)Direct Labour rate variance 4) Direct labour efficiency variance determine whether each variance if favourable or unfavourable. b) why favorable direct labour efficiency variance occur? c) Discuss the usefulness of variance analysis to this company.
Riza Company uses a standard cost system. Information for raw materials for Product DEF for the month of August follows:Standard price per pound of raw materials $1.60Actual purchase price per pound of raw materials $1.55Actual quantity of raw materials purchased 2,000 poundsActual quantity of raw materials used 1,900 poundsStandard quantity allowed for actual production 1,800 poundsQuestion: What is the materials purchase price variance? (label whether favorable or unfavorable; no dollar sign and comma)
Joyous Company purchases 12,000 pounds of materials. The materials price variance is P6,000 favorable. What is the difference between the standard and actual price paid for the materials?