Question 5: A Mechanical Design Company produces an innovative design of Batttery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which requires material mix shown in Table Q5a. The current monthly production of Battery is 2000 units per month with the actual material consumption shown in Table Q5b. Determine the following and justify why it is favorable or adverse. (6) Material usage variance; (i) Material price variance; (ii) Total material cost variance; Table Q5a Materials Usage (units) Total cost (OMR) V 17 W 3 38 50 38 Y 2 Table Q5b Total cost (OMR) 50,478 93,522 104,477 76.889 Materials Usage (units) 12,027 6,879 17,231 4,347 V Y

Question 5: A Mechanical Design Company produces an innovative design of Batttery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which requires material mix shown in Table Q5a. The current monthly production of Battery is 2000 units per month with the actual material consumption shown in Table Q5b. Determine the following and justify why it is favorable or adverse. (6) Material usage variance; (i) Material price variance; (ii) Total material cost variance; Table Q5a Materials Usage (units) Total cost (OMR) V 17 W 3 38 50 38 Y 2 Table Q5b Total cost (OMR) 50,478 93,522 104,477 76.889 Materials Usage (units) 12,027 6,879 17,231 4,347 V Y

Name: Question 5:A Mechanical Design Company produces an innovative design
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Question 5:A Mechanical Design Company produces an innovative design of Batttery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materialsBOM which requires material mix shown in Table Q5a.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Taguchi Loss Function Lanman, Inc., estimates its hidden external failure costs using the Taguchi loss function. Lanman produces plastic sheets that vary in thickness and grade. For one of its large-volume products, it was determined that k = $40,000 and T = 0.28 inches in diameter. A sample of four units produced the following values: Unit No. 1 2 3 $ 4 Required: Actual Diameter (y) 0.28 0.30 0.26 0.27 1. Calculate the average loss per unit. Round your intermediate calculations to six decimal places. If required, round your answer to the nearest cent and use the same in subsequent requirements. per unit 2. Assuming that 110,000 units were produced, what is the total hidden cost? 3. Assume that the multiplier for Lanman's hidden external failure costs is six. What are the measured external costs?
Title Calculate the material quantity variance. Description (JIT variances) Natural Gardens makes recylcable pots for plants and uses JIT to manage inventories and production. The following are standards for a typical 1-gallon pot: Annual Material Standards 32 ounces of Component X × $0.02 $0.64 2 ounces of Component Y × $0.05 0.10 $0.74 Current Material Standards 27 ounces of Component X × $0.02 $0.54 4 ounces of Component Y × $0.05 0.20 $0.74 In-house experiments indicated that changing the material standard would make the pots stronger, so the company issued an engineering change order for the product in February; this ECO established the current material standards. March production was 8,000 pots. Usage of raw material (all purchased at standard price) in March was 220,000 ounces of Component X and 31,000 ounces of Component Y. a. Calculate the material quantity variance. b. Calculate the ECO variance. c. Summarize the…
Please do not give solution in image format thanku
See attached image Required:Calculate Parker Plastic’s direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Please do not give solution in image format thanku
In the last quarter Company X has sourced a higher grade of material for its main product the Gyro. The material is more expensive than the previous material used but it has been found that significantly less of the new material is needed for each unit of the Gyro produced than the previous material. Which variances would you expect to see in the operating statement of company X for the last quarter? A.An adverse material price variance A favourable material usage variance B.A favourable material price variance An adverse material usage variance C.An adverse material price variance An adverse material usage variance D.A favourable material price variance A favourable material usage variance
What is the standard factory overhead rate?
.
Please do not give solution in image format thanku
1. Information for HUNTER X HUNTER direct material cost for July 2012 is as follows; Actual quantity of direct materials purchased and used is 50,000 kilos, actual cost of direct materials of P 175,000; Unfavorable direct material usage variance of P 8,000 and standard quantity of direct materials allowed for production is 48,000 kilos. What is the direct materials price variance? 2. Image attached
Provide Answer pls
Please provide solution