01. The following materials standards have been established for the product Wand: 10.0 kilograms Standard quantity per unit of output Standard price $16.20 per kilogram The following data pertains to operations concerning the product Wand for the last month; Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output 7,300 kilograms $120,000 7,122 kilograms 740 units Required: 1. What is the materials price variance for the month? 2. What is the materials quantity variance for the month?

01. The following materials standards have been established for the product Wand: 10.0 kilograms Standard quantity per unit of output Standard price $16.20 per kilogram The following data pertains to operations concerning the product Wand for the last month; Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output 7,300 kilograms $120,000 7,122 kilograms 740 units Required: 1. What is the materials price variance for the month? 2. What is the materials quantity variance for the month?

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Description: 01. The following materials standards have been established for the product Wand:JM-Standard quantity per unit of output 10.0 kilograms theStandard price$16.20 per kilogramThe following data pertains to operationsSActual materials purchasedActual co

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

01. The following materials standards have been established for the product Wand:
JM-
Standard quantity per unit of output 10.0 kilograms the
Standard price
$16.20 per kilogram
The following data pertains to operations
S
Actual materials purchased
Actual cost of materials purchased
Actual materials used in production
Actual output
■
Required:
What is the materials price variance for the month?
2. What is the materials
quantity variance for the month?
===
..
B
M
=======
D
M
BEBE
===
g
295.
= 3 =
7,300 kilograms
$120,000
7,122 kilograms
740 units
■
concerning the product Wand for the last month;
HUFINAİJA
■
■
20-121=0
EXCE
HE
SIC
D
10=
■
Fe

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