The standard cost of Product B manufactured by Sandhill Company includes 3.0 units of direct materials at $6.80 per unit. During June, 27,500 units of direct materials are purchased at a cost of $6.60 per unit, and 27,500 units of direct materials are used to produce 9,100 units of Product B. (a) Compute the total materials variance and the price and quantity variances, Total materials variance %24 Materials price variance Materials quantity variance (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.90 and the quantity purchased and used is 26,500 units. Total materials variance Materials price variance Materials quantity variance $4

The standard cost of Product B manufactured by Sandhill Company includes 3.0 units of direct materials at $6.80 per unit. During June, 27,500 units of direct materials are purchased at a cost of $6.60 per unit, and 27,500 units of direct materials are used to produce 9,100 units of Product B. (a) Compute the total materials variance and the price and quantity variances, Total materials variance %24 Materials price variance Materials quantity variance (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.90 and the quantity purchased and used is 26,500 units. Total materials variance Materials price variance Materials quantity variance $4

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Description: The standard cost of Product B manufactured by Sandhill Company includes 3.0 units of direct materials at $6.80 per unit. DuringJune, 27.500 units of direct materials are purchased at a cost of $6.60 per unit, and 27,500 units of direct materials ar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The standard cost of Product B includes 3 units of Direct Material at $5.00 per unit. During January, 29,000 units of direct material are purchased and used. The units of Direct material cost $4.75 per unit. The company produced 9,300 units. A. Calculate the Direct Material price varianceB. Calculate the Direct Material quantity varianceC. Calculate the Total Direct Material cost variance
Use the information provided to answer the questions. Actual price paid per pound of material $15.00 Total standard pounds for units produced this period 12,600 Pounds of material used 13,300 Direct materials price variance favorable $3,990.00 All material purchased was used in production. Enter all amounts as positive numbers. A. What is the standard price for materials? Standard price paid $ B. What is the direct materials quantity variance? Direct materials quantity variance $ C. What is the total direct materials cost variance? Total direct materials cost variance $ D. If the direct materials price variance was unfavorable, what would be the standard price? Standard price $
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,000 automobile tires: Actual: 51,600 lbs. at $1.85 per Ib. Standard: 50,600 lbs. at $1.90 per Ib. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance Favorable Favorable Direct Materials Quantity Variance Favorable Total Direct Materials Cost Variance . When lower amounts of direct materials are used because of production b. The direct materials price variance should normally be reported to the Plant Manager . When the favorable use of raw materials is caused by the purchase of higher-quality efficiencies, the variance would be reported to the Production Supervisor raw materials, the variance should be reported to the Purchasing Department %24 %24 %24
The standard cost of Product B manufactured by Pharoah Company includes 2.6 units of direct materials at $5.30 per unit. During June, 27,400 units of direct materials are purchased at a cost of $5.05 per unit, and 27,400 units of direct materials are used to produce 10,400 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $ Materials price variance $ Materials quantity variance $ (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.40 and the quantity purchased and used is 26,900 units. Total materials variance $ Materials price variance $ Materials quantity variance $
Starts Inc. produces a product for which the standard specifies 8 yards of material per unit. The standard price of one yard of material is $8.50. During the month, 7,400 products were manufactured, using 57,900 yards at a cost of $8.30 per yard. Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance. (d) perform the journal entries to record the variances
During the period, Shalom Company produced 8,000 units and applied overhead based on the direct labor hours. The standard cost card showed the following information: Standard Direct labor hours per unit Actual Direct labor hours 3 25,000 P1.90 P2.20 P48,000 P51,000 P55,000 Actual Fixed overhead cost P57,500 Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Standard Fixed overhead per DLH Standard Variable overhead per DLH Budgeted variable overhead Actual Variable overhead cost Budgeted fixed overhead Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the fixed overhead volume variance?
The standard material costs of finished product PEP are as follows: 2 kg raw material A @ R10 per kg Actual information: Purchase of raw material A 2 000 kg @ R9.50 per kg Issue of raw material A 1 200 kg Units of product PEP manufactured 280 units Required Calculate the following in respect of material A (a) Purchase price variance (3) (b) Issue price variance (c) Quantity variance (d) Total variance.
Ex. 6-1. Materials Cost Variances. Carmen Company produces and selle product with the following material standards: Quantity - 5 liters of raw materials per unit Price P7.00 per liter Actual data on production and material costs for the previous month were gathered as follows: Production - 3,000 units of product Quantity of materials purchased - 20,000 liters Quantity of materials used 14,000 liters Price paid for materials purchased - P7.10 per liter Required: a. Determine the total materials cost variance. b. Compute the price and quantity variances. c. Determine the purchase price variance.
The following data relate to the direct materials cost for the production of 2,300 automobile tires: Actual: 52,300 lbs. at $1.8 per lb. Standard: 50,700 lbs. at $1.85 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ ________ _________ Direct Materials Quantity Variance $. ________ ________ Total Direct Materials Cost Variance $. _______ ________ b. The direct materials price variance should normally be reported to the _____ . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the _____ . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the _____ .
Blossom Company's standard labor cost of producing one unit of Product DD is 3.00 hours at the rate of $10.00 per hour. During August, 40,000 hours of labor are incurred at a cost of $10.10 per hour to produce 13,200 units of Product DD. (a) Compute the total labor variance. Total labor variance $ (b) Compute the labor price and quantity variances. Labor price variance Labor quantity variance (c) Labor price variance $ Labor quantity variance GA $ GA Compute the labor price and quantity variances, assuming the standard is 3.2 hours of direct labor at $10.20 per hour. $ GA tA < $
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