Exercise 10-7 (Algo) Direct Materials Variances [LO10-1] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials. Direct labor Standard Quantity or Hours 5.50 pounds 0.50 hours Standard Price or Rate. Standard Cost $2.50 per pound $13.75 $ 6.50 per hour $ 3.25 During the most recent month, the following activity was recorded: a. Ten thousand six hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,060 units, using 9,540 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 630 hours of direct labor time were recorded at a total labor cost of $7,560. Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for

Exercise 10-7 (Algo) Direct Materials Variances [LO10-1] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials. Direct labor Standard Quantity or Hours 5.50 pounds 0.50 hours Standard Price or Rate. Standard Cost $2.50 per pound $13.75 $ 6.50 per hour $ 3.25 During the most recent month, the following activity was recorded: a. Ten thousand six hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,060 units, using 9,540 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 630 hours of direct labor time were recorded at a total labor cost of $7,560. Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for

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Description: answer in text form please (without image) Exercise 10-7 (Algo) Direct Materials Variances [LO10-1]Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given belo

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1BE: Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds...

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Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is 3.75 per pound. If 15,000 units used 36,000 pounds, which were purchased at 4.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?
Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 6.50 pounds $ 1.90 per pound $ 12.35 Direct labor 0.30 hours $ 13.00 per hour $ 3.90 During the most recent month, the following activity was recorded: 20,500.00 pounds of material were purchased at a cost of $1.70 per pound. All of the material purchased was used to produce 3,000 units of Zoom. 800 hours of direct labor time were recorded at a total labor cost of $12,000. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no…
Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours 6.50 pounds 0.30 hours Standard Price or Rate $ 1.90 per pound $ 13.00 per hour Standard Cost $ 12.35 $ 3.90 During the most recent month, the following activity was recorded: a. 20,500.00 pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $12,000. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero…
Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate $ 2.30 per pound $ 8.00 per hour Standard Cost $ 17.94 $ 2.40 7.80 pounds 0.30 hours During the most recent month, the following activity was recorded: a. 25,900.00 pounds of material were purchased at a cost of $2.10 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 700 hours of direct labor time were recorded at a total labor cost of $6,300. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero…
Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) Standard Quantity or Hours 3.6 yards 0.7 hours 0.7 hours 0.7 hours (2) Standard Price or Rate $ 3.00 per yard $ 16.00 per hour $2.00 per hour $5.00 per hour Standard Cost (1) x (2) $ 10.80 11.20 1.40 3.50 $ 26.90 Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead = $40,000 Budgeted Fixed Overhead = ? Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $? Budget variance = $? Volume variance = $3,300 F Required: 1. What were the standard hours allowed for the year's…
Exercise 10-7 (Algo) Direct Materials Variances [LO10-1] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below. Direct materials Direct labor Standard Quantity or Hours 6.30 pounds! 0.50 hours Standard Price or Rate $ 2.50 per pound $ 10.50 per hour Materials price variance Materials quantity variance Standard Cost $15.75 $5.25 During the most recent month, the following activity was recorded: a. Twelve thousand two hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,220 units, using 10,980 pounds of material (The rest of the material purchased remained in raw materials Inventory.) c. 710 hours of direct labor time were recorded at a total labor cost of $8,520 Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None"…
Maps omework i News A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ = Actual Quantity SQ = Standard Quantity F1 2 Translate M SmartBook 2.0 M SmartBook 2.0 W AP Actual Price SP Standard Price Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost X X F2 # 3 E 80 F3 $ 4 R a F4 % 5 F5 T 0 X X < Prev Muslimin ‹6 A $ 525,000 Saved $ 8 per unit 300,000 pounds 61,000 units F6 C 2 of 7 Y & 7 www K F7 U Next * 8 DII F8 Standard Cost X X ( 9 DD F9 0 ) A F10 D
Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate 6.80 pounds 0.20 hours $2.90 per pound $ 9.00 per hour Standard Cost $ 19.72 $ 1.80 During the most recent month, the following activity was recorded: a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 300 hours of direct labor time were recorded at a total labor cost of $3,300. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect…
Problem 10A-9 (Algo) Applying Overhead; Overhead Variances [LO10-3, LO10-4] Baird Company makes Polish sausage. It applied manufacturing overhead to production based on standard direct labor-hours. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 30,000 labor-hours (the denominator activity level): Variable manufacturing overhead cost Fixed manufacturing overhead cost Total manufacturing overhead cost During the most recent year, the following operating results were recorded: Activity: Actual labor-hours worked Standard labor-hours allowed for the actual output Actual Cost: Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred At the end of the year, the company's Manufacturing Overhead account contained the following data: Manufacturing Overhead 409,800 Applied 31,800 Debit $ 172,500 232,500 $ 405,000 Credit 27,000 28,000 378,000 $ 199,800 $ 210,000…
2 The following company information is available for March. The direct materials price variance is: Direct materials purchased and used Standard costs for direct materials for March production Multiple Choice $9,200 unfavorable. $9,200 favorable. $9,000 favorable. 4,500 feet @ $98 per foot 4,600 feet @ $96 per foot
Problem 10-13 (Algo) Basic Variance Analysis; the Impact of Variances on Unit Costs [LO10-1, LO10-2, LO10-3] Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $3.40 per foot $ 6.46 Actual: 1.85 feet at $3.80 per foot $ 7.03 Direct labor: Standard: 0.95 hours at $20.00 per hour 19.00 Actual: 1.00 hours at $19.50 per hour 19.50 Variable overhead: Standard: 0.95 hours at $7.00 per hour 6.65 Actual: 1.00 hours at $6.60 per hour 6.60 Total cost per unit $ 32.11 $ 33.13 Excess of actual cost over standard cost per unit $ 1.02 The production superintendent was pleased when he saw this report and commented: “This $1.02 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious…
=t K Sunny Corporation has collected the following data for one of its products: Direct materials standard (3 pounds per unit @ $0.56/lb.) Direct materials flexible budget variance-unfavorable Actual Direct Materials Used (AQU) Actual finished goods produced What is the actual cost of the Direct Materials Used (AQU) per pound? OA. $0.56 OB. $1.36 OC. $1.01 OD. $2.26 $1.68 per finished good $14.000 40,000 pounds 24,000 units