Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.6 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,000,000 ounces of aluminum. The actual cost of aluminum was $0.18 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the total variance for aluminum for the month of April. Enter amount as a positive number and select Favorable or Unfavorable. $fill in the blank 1

Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.6 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,000,000 ounces of aluminum. The actual cost of aluminum was $0.18 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the total variance for aluminum for the month of April. Enter amount as a positive number and select Favorable or Unfavorable. $fill in the blank 1

Name: Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a
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Description: Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.6 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,000,000 ounces of aluminum. The actual cost of aluminum was

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Smith Industries bought 15,500 pounds of material in the current period. There was a $250 unfavorable direct materials price variance. A. How much in total did Sitka pay for the 15,500 pounds? B. What is the direct materials quantity variance? C. What is the total direct material cost variance? D. What ii 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance? E. It there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material?
Corolla Manufacturing has a standard cost for steel of $20 per pound for a product that uses 4 pounds of steel. During September, Corolla purchased and used 4,200 pounds of steel to make 1,040 units. They paid $20.75 per pound for the steel. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance for the month of September. What would change if Corolla had made 2,200 units?
Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.7 ounces of aluminum per can. During the month of April, 450,000 cans were produced using 1,875,000 ounces of aluminum. The actual cost of aluminum was $0.10 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the materials price and usage variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Materials Price Variance Material Usage Varianc
a) Lala Company produces aluminium cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminium per can. During the month of April, 300,000 cans were produced using 1,250,000 ounces of aluminium. The actual cost of aluminium was RMO.09 per ounce and the standard price was RM0.08 per ounce. There are no beginning or ending inventories of aluminium. Required: i. Calculate the total variance for aluminium for the month of April. ii. Calculate the materials price and usage variances.
The standard cost of a gallon of paint manufactured by Through-the-Letters, Inc. includes 4 pounds of direct materials at $5.00 per pound. During February, 80,000 pounds of direct materials are purchased at a cost of $4.80 per pound, and 74,000 pounds of direct materials are used to produce 19,000 gallons of paint. Instructions (a) Compute the materials price and quantity variances, and indicate whether the variance is favorable or unfavorable. (b) Journalize the purchase of the materials and the issuance of the materials, assuming a standard cost system is used.
Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unit quantity of 0.45 ounce of plastic per bottle. During the month of June, 240,000 bottles were produced using 110,000 ounces of plastic. The actual cost of plastic was $0.042 per ounce, and the standard price was $0.045 per ounce. There is no beginning or ending inventories of plastic. Required: Calculate the total variance for plastic for the month of June. Enter the amount as a positive number and select Favorable or Unfavorable.
Ambient Inc. produces aluminum cans. Each can has a standard labor requirement of 0.03hour. During the month of May, 500,000 cans were produced using 14,000 labor hours @$15.00. The standard wage rate is $14.50 per hour. Refer to the information for Ambient Inc. above.Required:Calculate the labor rate and efficiency variances using the columnar and formula approaches.
Sheffield Company's standard materials cost per unit of output is $8.20 (2.00 pounds x $4.10). During July, the company purchases and uses 2,700 pounds of materials costing $14,580 in making 1,500 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) Total materials variance $ Materials price variance Materials quantity variance $ %24 %24
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Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $13.00 per gallon. During July, Scarlett Company purchased and used 7,470 gallons at an actual price of $12.60 to produce 2,050 units. What is the direct materials price variance?
Grace Company manufactures tables with glass tops. The standard material cost for the glass used per Style-R table is P7.80 based on 6 square feet of vinyl at a cost of P1.30 per square foot. A production run of 1,000 tables in January resulted in usage of 6,400 square feet of vinyl at a cost of P1.20 per square foot, a total cost of P7,680. The usage variance resulting from the above production run was: Group of answer choices 520 unfavorable 640 favorable 120 favorable 480 unfavorable
Kilo Company uses a standard costing system that allows 2.0 pounds of direct materials for one finished unit of product. During July, the company purchased 40,000 pounds of direct materials for $210,000, and manufactured 12,000 finished units. The standard direct materials cost allowed for the units manufactured is $120,000. The performance report shows that Kilo has an unfavorable direct materials usage variance of $5,000. Also, the company records any price variance for materials at time of purchase. The direct materials purchase-price variance in July was: Multiple Choice $10,000 unfavorable. $50,000 unfavorable. $80,000 unfavorable. $86,000 unfavorable. $90,000 unfavorable.