The standard costs and actual costs for direct materials for the manufacture of 2,640 actual units of product are as follows: Standard Costs Direct materials Direct materials 2,640 kilograms at $8.90 Actual Costs 2,700 kilograms at $8.10 The direct materials quantity variance is Oa. $534 unfavorable Ob. $427 unfavorable Oc. $427 favorable Od. $534 favorable

The standard costs and actual costs for direct materials for the manufacture of 2,640 actual units of product are as follows: Standard Costs Direct materials Direct materials 2,640 kilograms at $8.90 Actual Costs 2,700 kilograms at $8.10 The direct materials quantity variance is Oa. $534 unfavorable Ob. $427 unfavorable Oc. $427 favorable Od. $534 favorable

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Description: The standard costs and actual costs for direct materials for the manufacture of 2,640 actual units of product are as follows:Standard CostsDirect materialsDirect materials2,640 kilograms at $8.90Actual Costs2,700 kilograms at $8.10The direct materia

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 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...

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The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are Actual Material price per pound of direct material Quantity of material in pound per unit of product Actual production untis of product BDMOV (AQ SQ) for Actual Production x SP C DMCV DMPV + DMOV Actual cost per unit of product (AC) Standard costs per unit of product (SC) $8.00 Alternate formula to compute DMCV= (Actual cost-standard cost) per unit x # of units 065 3,000 Required: Compute the followings variances and indicate if they are favorable (F) or unfavorable (UF) A. Direct material Price variance (DMPV) B. Direct matenal Quantity variance (DMQV) C. Total Direct material Cost variance (DMCV) Solution: A.DMPV = (AP-SP) x AQ for Actual Production Standard Variance $ For UF ($1,462 50) F ($5,250.00) F AQ $8.75 SQ 0.45 ($6.712 50) F 1950 1350 Acronyms: AP Actual price per unit of Material SP Standard price per unit of Material AQ-Actual quantity of Material for Actual…
Information about direct materials cost follows for a local company: Standard price per materials gram $ 15 Actual quantity used 2,250 grams Standard quantity allowed for production 2,400 grams Price variance $ 13,500 F Required: What was the actual purchase price per gram?
Consider the following data collected for Cari's Rentals: Direct Materials Direct Manufacturing LaborCost incurred:Actual inputs x Actual prices $210,000 $95,000Actual inputs x standard prices 214,000 88,000Standard inputs allowed for actual output x standard prices 220,000 85,000Required Compute the price and efficiency variances for direct materials: a. Price $10000 U; Efficiency $4000 F b. Price $4000 F; Efficiency $6000 F c. Price $4000 F; Efficiency $10000 U d. Price $5000 F; Efficiency $5000 F Sales $50,000; Variable cost $30,000; Net profit $6,000; fixed cost is_____. a. $10,000. b. $l4,000 . c. $12,000. d. 8,000. Jackie's Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of$60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20%…
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials anddirect labor standards for one unit of Zoom are given below:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials ........... 4.6 pounds $2.50 per pound $11.50Direct labor ................. 0.2 hours $12.00 per hour $2.40During the most recent month, the following activity was recorded:a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.b. All of the material purchased was used to produce 4,000 units of Zoom.c. 750 hours of direct labor time were recorded at a total labor cost of $10,425.Required:1. Compute the direct materials price and quantity variances for the month.2. Compute the direct labor rate and efficiency variances for the month.
Consider the following data collected for Albo's Rentals: Direct Materials Direct Manufacturing Labor Cost incurred: Actual inputs x Actual prices $210,000 $95,000 Actual inputs x standard prices 214,000 88,000 Standard inputs allowed for actual output x standard prices 220,000 85,000 Required: Compute the price and efficiency variances for direct materials: a.Price $4000 F; Efficiency $6000 F b.Price $10000 U; Efficiency $4000 F c.Price $5000 F; Efficiency $5000 F d.Price $4000 F; Efficiency $10000 U
Material Material Actual Standard Actual Standard Price Usage Total Supplier Price Price Quantity Quantity Var Var Variance Current $7.50 $7.50 25,000 24,240 $0 Alternative #1 $7.35 $7.50 25,500 24,240 $0 Alternative #2 $7.58 $7.50 24,400 24,240 $0 Standard Quantity is 2.02 components Quantity produced is 12,000 You are a plant manager and have been approached by your purchasing manager about swapping out one of your suppliers. The manager has identified a vendor who will supply a key component at a 2% discount to your current supplier. At the same time, the supervisor of the group approaches you to indicate that the current supplier is not consistently meeting tolerances. The supervisor suggests a second vendor who promises better quality. You decide to run three batches, each with a different component. Results are in the table above. Task 1 Calculate the Material Price Variance for each component. Task 2 Calculate the Material Usage Variance for each component. Task 3 Based on the…
akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocalo-piugie eBook I Print Item Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs 182,000 lbs. at $5.90 180,200 Ibs. at $5.80 Direct materials Direct labor 17,500 hrs. at $16.70 17,900 hrs. at $17.10 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $3.80 $65,840 variable cost Fixed cost, $6.00 $109,560 fixed cost Each unit requires 0.25 hour of direct labor. Required: 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…
Problem 16-61 (Algo) Direct Materials (LO 16-5) Information about direct materials cost follows for a local company: Standard price per materials gram Actual quantity used Standard quantity allowed for production 20 2,270 grams 2,400 grams $15,890 F Price variance Required: What was the actual purchase price per gram? Actual purchase price per gram
Sub : Accounting Please answer all questions. Please type the solution. Thank You Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows: Line Item Description Standard Costs Actual Costs Direct materials 195,000 lbs. at $5.50 per lb. 193,100 lbs. at $5.40 per lb. Direct labor 19,500 hrs. at $16.80 per hr. 19,950 hrs. at $17.10 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Factory overhead Variable cost, $2.90 $55,980 variable cost Factory overhead Fixed cost, $4.60 $93,610 fixed cost Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost…
Consider the following data collected for Albo's Rentals: Direct Materials Direct Manufacturing Labor Cost incurred: Actual inputs x Actual prices $210,000 $95,000 Actual inputs x standard prices 214,000 88,000 Standard inputs allowed for actual output x standard prices 220,000 85,000 Required: Compute the price and efficiency variances for direct manufacturing labor: a. Price $7000 F; Efficiency $3000 U b. Price $7000 U; Efficiency $3000 U c. Price $5000 U; Efficiency $5000 U d. Price $7000 U; Efficiency $3000 F
Lights Incorporated calculates cost for an equivalent unit of production using the weighted-average method. Data for July: Work-in-process inventory, July 1 (39,500 units): Direct materials (93% completed) Conversion (57% completed) Balance in work in process inventory, July 1 Units started during July Units completed and transferred Work-in-process inventory, July 31: Direct materials (93% completed) Conversion (57% completed) Cost incurred during July: Direct materials Conversion costs $ 122,750 77,200 $ 199,950 93,500 108,300 24,700 $ 183,500 291,500 Total equivalent units for materials under the weighted-average method are calculated to be:
The standard cost card for one unit of a finished product shows the following: Standard Quantity or Hours Standard Price or Rate Direct materials 12 feet $ ? per foot $12 per hour $ 8 per hour Direct labor 1.5 hours Variable manufacturing overhead 1.5 hours If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is: