The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are 1950 1350 Material price per pound of direct material Quantity of material in pound per unit of product Actual production untis of product Solution: A DMPV (APSP) x AQ for Actual Production 3 DMOV (AQ SQ) for Actual Production x SP Actual C DMCV DMPV + DMOV Actual cost per unit of product (AC) Standard costs per unit of product (SC) ternate formula to compute DMCV= $8.00 Required: Compute the followings variances and indicate if they are favorable (F) or unfavorable (UF) A Direct material Price variance (DMPV) 3 Direct matenal Quantity variance (DMQV) Total Direct material Cost variance (DMCV) 065 3,000 Standard Variance $ For UF ($1,462 50) F ($5,250 00) F AQ $8.75 SQ 0.45 ($6,712 50) F Acronyms: AP Actual price per unit of Material SP Standard price per unit of Material AQ-Actual quantity of Material for Actual production SQ-Standard quantity of Material for Actual production

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are 1950 1350 Material price per pound of direct material Quantity of material in pound per unit of product Actual production untis of product Solution: A DMPV (APSP) x AQ for Actual Production 3 DMOV (AQ SQ) for Actual Production x SP Actual C DMCV DMPV + DMOV Actual cost per unit of product (AC) Standard costs per unit of product (SC) ternate formula to compute DMCV= $8.00 Required: Compute the followings variances and indicate if they are favorable (F) or unfavorable (UF) A Direct material Price variance (DMPV) 3 Direct matenal Quantity variance (DMQV) Total Direct material Cost variance (DMCV) 065 3,000 Standard Variance $ For UF ($1,462 50) F ($5,250 00) F AQ $8.75 SQ 0.45 ($6,712 50) F Acronyms: AP Actual price per unit of Material SP Standard price per unit of Material AQ-Actual quantity of Material for Actual production SQ-Standard quantity of Material for Actual production

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Total product cost per unit under absorption costing = Units produced = 1000Direct Materials = $ 6Direct Labor = $10Fixed overhead =$ 6000Variable overhead = $ 6Fixed Selling & Admin = $ 2000Variable Selling & Admin $ 2
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