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
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.
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
![Kimetsu Yaiba manufactures the famous sword on an assembly line basis. Jan 1 work in process.consist
of 5,000 units partially completed. During the month an additional 110,000 units were started and 105,000
units were completed. The ending work in process was 3/5 complete as to conversion cost. Conversion
cost are added evenly throughout the process. The following conversion cost were incurred:
• Beginning cost for WIP is 1,500
• Total current conversion cost is 273,920
The conversion cost assigned to ending work in process totalled P 15,360 using FIFO method of process....
costing. What was the percentage of compeltion as to conversion cost on the 5,000 units in beginning
work in process?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02ab07dd-6126-4d33-8be1-aa11504cd311%2Ff0f9022f-4fb5-4ebf-8609-ecd9d2e79828%2Fkv9aagq_processed.jpeg&w=3840&q=75)
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