A company reports the following for one of its products.Direct materials standard (4 pounds @ $2 per pound)Actual units produced$ 8 per unit60,000 units$ 540,000Actual cost of direct materials usedCompute the total direct materials variance and identify it as favorable or unfavorable. (Indicate the effect of the variance byselecting favorable, unfavorable, or no variance.)Direct materials variance< Prey2 of 9Next >49°F Sunny(hp

Name: A company reports the following for one of its products.Direct materi
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Description: A company reports the following for one of its products.Direct materials standard (4 pounds @ $2 per pound)Actual units produced$ 8 per unit60,000 units$ 540,000Actual cost of direct materials usedCompute the total direct materials variance and iden

Solution... Standard quantity = Actual output * standard quantity per unit = 60,000 units * 4…

Business

Accounting

A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per.pound) Actual units produced Actual cost of direct materials used $8 per unit 60,000 units $ 540,000 Compute the total direct materials variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Direct materials variance < Prev 2 of 9 Next > 49°F Sunny hp

A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per.pound) Actual units produced Actual cost of direct materials used $8 per unit 60,000 units $ 540,000 Compute the total direct materials variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Direct materials variance < Prev 2 of 9 Next > 49°F Sunny hp

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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Direct Materials Variances The following data relate to the direct materials cost for the production of 1,900 automobile tires: Actual: 60,000 lbs. at $1.8 per lb. Standard: 61,800 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 .
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Question - 3: Multiple- Choice Questions The direct and indirect variances -:The materials price variance is -1 The standard costs of materials and labor for this product follow: Direct materials 11 lbs. @ $7.95 Direct labor 4 hrs. @ $9.40 During the first month of the year, 20,100 boards were produced. Information conceming actual costs and usage of materials and labor follows: Materials used 220,400 lbs. @ S8.05 Direct labor 79,900 hrs.; total cost: $759,050 $22,250 U (O $22,040 U O $771,400 U $650,180 U O PSC EN
actual price paid for material $1.00 standard price for material $1.20 actual quality purchased and used in production 100 standard quality for units produced 110 actual labor rate per hour $15.00 standard labor rate per hour $16.00 actual hours 200 standard hours for unit produced 220 Required: Compute the material price and quantity, and the labor rate and efficiency variances. Describe the possible causes for this combination of favorable and unfavorable variances.
Requirements: Compute 4.Direct-labor quantity (efficiency) variance 5.Variable manufacturing overhead rate variance, 6.Variable manufacturing overhead efficiency variance.
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Problem 2 (Comprehensive Variance Analysis; Journal Entries) Moda Mills, Inc., is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs for a recent period are given below for one of the company's product lines (per unit of product): Standard Cost Actual Cost Direct materials: Standard: 4.0 yards at P3.60 per yard... Actual: 4.4 yards at P3..35 per yard... P14.40 P14.74 Direct labor: Standard: 1.6 hours at P4.50 per hour.. Actual: 1.4 hours at P4.85 per Variable manufacturing overhead: Standard: 1.6 hours at P1.80 per hour..... Actual: 1.4 hours at P2.15 per Total cost per unit...... 7.20 hour.. 6.79 2.88 hour .. 3.01 P24.54 P24.48
eBook Show Me How Print Item Direct Materials Variances The following data relate to the direct materials cost for the production of 1,800 automobile tires: Actual: 53,600 lb. at $2.00 Standard: 52,500 lb. at $2.05 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. Price variance $fill in the blank 1 Quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5 b. The direct materials price variance should normally be reported to the . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,100 automobile tires: Actual: 59,100 lbs. at $1.9 per lb. Standard: 60,300 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 $fill in the blank 1 Direct Materials Quantity Variance $fill in the blank 3 Total Direct Materials Cost Variance $fill in the blank 5 b. The direct materials price variance should normally be reported to the . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the .
Direct Material Direct Labor Standard Cost Data per 1 Unit Quantity Price 3 lbs $2.00/lb 2 hrs $4.00/hr Actual Data: Units produced Material purchase & usage Direct Labor Show all computations. 25 100 lbs at $2.20 per lb 30 hrs; total cost $129 a) Compute price variance, quantity variance, direct material variance b) Compute rate variance, efficiency variance, direct labor variance