A company provided the following direct materials cost information. Compute the direct materials quantity variance. standard costs assigned: Direct materials standard cost (455,000 units @ $3.00/unit) Actual costs: $ 1,365,000 Direct materials costs incurred (453,680 units @ $3.10/unit) $ 1,406,408 Multiple Choice $41,408 Favorable. $4,092 Unfavorable $4,092 Favorable. $3,960 Favorable. $3,960 Unfavorable.

A company provided the following direct materials cost information. Compute the direct materials quantity variance. standard costs assigned: Direct materials standard cost (455,000 units @ $3.00/unit) Actual costs: $ 1,365,000 Direct materials costs incurred (453,680 units @ $3.10/unit) $ 1,406,408 Multiple Choice $41,408 Favorable. $4,092 Unfavorable $4,092 Favorable. $3,960 Favorable. $3,960 Unfavorable.

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 7E: H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup...

See similar textbooks

Similar questions

Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (7,650 pounds) has the following standards: The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: a. Determine the standard unit materials cost per pound for a standard batch. b. Determine the direct materials quantity variance for batch 08-99.
Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
A company provided the following direct materlals cost Information. Compute the total direct materials variance. Standard costs assigned: Direct materials standard cost ( 419,000 units @ $4.00/unit) $ 1,676,000 Actual costs: Direct materials costa incurred (417,750 units @ $4..20/unit) $ 1,754,550 Multiple Choice $5,000 Favorable. $78,550 Unfavorable. $83,550 Unfavorable. $78,550 Favorable. $83,550 Favorable.
A company provided the following direct materials cost information. Compute the direct materials quantity variance. Standard costs assigned: Direct materials standard cost (415,000 units @ $2.60/unit) Actual costs: Direct materials costs incurred (413,040 units @ $2.90/unit) Multiple Choice $5,096 Unfavorable. $5,684 Unfavorable $5,096 Favorable. $118,816 Favorable. $ 1,079,000 $ 1,197,816
A company provided the following direct materials cost information. Compute the direct materials quantity variance. Standard costs assigned: Direct materials standard cost (405,000 units @ $4.00/unit) $ 1,620,000 Actual costs: Direct materials costs incurred (403,120 units @ $4.30/unit) $ 1,733,416 Multiple Choice $113,416 Favorable. $8,084 Unfavorable $8,084 Favorable. $7,520 Favorable. $7,520 Unfavorable.
unc.8 A company provided the following direct materials cost information. Compute the direct materials price variance. Standard costs assigned: Direct materials standard cost (410,000 units @ $3.90/unit) $ 1,599,000 Actual costs: Direct materials costs incurred (409,250 units @ $4.00/unit) $ 1,637,000 Multiple Choice $1,599,000 Favorable. $1,599,000 Unfavorable. $40,925 Unfavorable. $40,925 Favorable. $41,000 Favorable.
cost account
The standard costs and actual costs for direct materials for the manufacture of 2,780 actual units of product are as follows: Standard Costs Direct materials Direct materials 2,780 kilograms at $8.70 Actual Costs 2,900 kilograms at $8.05 The direct materials quantity variance is Oa. $835 unfavorable Ob. $1,044 unfavorable Oc. $1,044 favorable Od. $835 favorable
cost accounts
Can you answer both of these questions