Camping Supply Company has developed a new camping lamp that runs on solar power. The solar cells charge in the sun all day a then the lamp is ready to run when the sun goes down. The company has a standard costing system to help control costs and has established the following standards related to the new camping lamp: Direct materials: 2 small solar cells per lamp at $0.50 per cell Direct labour: 0.50 hours per lamp at $15 per hour During March, the company produced 4,000 camping lights. Production data for March are as follows: Direct materials: 12,000 small solar cells were purchased at a cost of $0.45 per cell; 5,500 of these were still in inventory at the end the month (there was no opening inventory). Direct labour: 1,600 direct labour-hours were worked at a cost of $25,600. Required. 1-a. Compute the direct materials price and quantity variances for March. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Answer is complete but not entirely correct. Materials price variance Materials quantity variance $ 325 X F $ >> 0 None ✔
Camping Supply Company has developed a new camping lamp that runs on solar power. The solar cells charge in the sun all day a then the lamp is ready to run when the sun goes down. The company has a standard costing system to help control costs and has established the following standards related to the new camping lamp: Direct materials: 2 small solar cells per lamp at $0.50 per cell Direct labour: 0.50 hours per lamp at $15 per hour During March, the company produced 4,000 camping lights. Production data for March are as follows: Direct materials: 12,000 small solar cells were purchased at a cost of $0.45 per cell; 5,500 of these were still in inventory at the end the month (there was no opening inventory). Direct labour: 1,600 direct labour-hours were worked at a cost of $25,600. Required. 1-a. Compute the direct materials price and quantity variances for March. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Answer is complete but not entirely correct. Materials price variance Materials quantity variance $ 325 X F $ >> 0 None ✔
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Aapesh
Transcribed Image Text:Camping Supply Company has developed a new camping lamp that runs on solar power. The solar cells charge in the sun all day and
then the lamp is ready to run when the sun goes down. The company has a standard costing system to help control costs and has
established the following standards related to the new camping lamp:
Direct materials: 2 small solar cells per lamp at $0.50 per cell
Direct labour: 0.50 hours per lamp at $15 per hour
During March, the company produced 4,000 camping lights. Production data for March are as follows:
Direct materials: 12,000 small solar cells were purchased at a cost of $0.45 per cell; 5,500 of these were still in inventory at the end of
the month (there was no opening inventory).
Direct labour: 1,600 direct labour-hours were worked at a cost of $25,600.
Required:
1-a. Compute the direct materials price and quantity variances for March. (Indicate the effect of each variance by selecting "F" for
favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
> Answer is complete but not entirely correct.
Materials price variance
Materials quantity variance
$ 325 F
$
0 None
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
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,
Accounting
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