Problem 4: Singh Corporation makes a product with the following standard costs for a raw material used in its production: Standard quantity of the material Standard price of the material The following data pertain to a recent month's operations: Actual material purchased Actual cost of material purchased! Actual material used in production Actual output 6 meters per unit produced $15 per meter 3,600 meters $ 60,780 3,200 meters 530 units produced The direct materials purchases variance is computed when the materials are purchased. The direct materials quantity variance is computed when the materials are used. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month? c. Which variances, if any, do you believe the corporation should investigate? Why?

Problem 4: Singh Corporation makes a product with the following standard costs for a raw material used in its production: Standard quantity of the material Standard price of the material The following data pertain to a recent month's operations: Actual material purchased Actual cost of material purchased! Actual material used in production Actual output 6 meters per unit produced $15 per meter 3,600 meters $ 60,780 3,200 meters 530 units produced The direct materials purchases variance is computed when the materials are purchased. The direct materials quantity variance is computed when the materials are used. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month? c. Which variances, if any, do you believe the corporation should investigate? Why?

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Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 11P: On May 1, Athens Inc. began the manufacture of a new mechanical device known as Snap. The company...

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