A company's standard cost system requires 7,000 direct laborhours per month jg. qtler taproduce 3,500 units of handbags.The management has set 2 standard of using 4.3 yards ofdirect materials per unit of handbag. Information regardingstandard costs is mentioned below:ParticularsTotal standard direct materials costTotal standard direct labor costTotal standard variable manufacturing overhead(based on direct labor-hours)AmountParticularsTotal actual direct materials costTotal actual direct labor costTotal actual variable manufacturing overhead$54,250$42,000$18,200During November, the company produced 3,600 wits ofhandbags using 6 960 direct labor hours. Actual cots recordadisthe month of Novemb are ss allows:Amount$64,800$52,200$24,360The company used 21,600 yards of materials to produce 3,600unis of handbags. Materials purchased during the month wereused in production.Requirement: Determine the direct materials price variance anddirect labor eficiency vaiance. (Rousd all he ntemuedistecaleslations to 2 decimal places)Direct materials price variance is $9,504 U and direct labor efficiency variance is $1,440 U.Direct materials price variance is $3,640 U and direct labor efficiency variance is $240U.Direct materials price variance is $9,504 F and direct labor efficiency variance is $1,440 F.Direct materials price variance is $3640 F and direct labor efficiency variance is $240F.

Name: A company's standard cost system requires 7,000 direct laborhours per
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: A company's standard cost system requires 7,000 direct laborhours per month jg. qtler taproduce 3,500 units of handbags.The management has set 2 standard of using 4.3 yards ofdirect materials per unit of handbag. Information regardingstandard costs

Variance analysis is a tool used in management accounting. In this, we calculate the deviations of…

Answered: Requirement: Determine the direct…

Business

Accounting

Requirement: Determine the direct materials price variance and direct labor eficiency vaiance. (Rousd all he ntemuediste caleslations to 2 decimal places)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

а. Standard Cost per Unit for Direct Materials and Direct Labor b. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong с. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong
There were no beginning inventories. Q. Calculate the direct materials price variance.
Which of the following is the difference between the actual cost of materials and thematerials cost allowed for the actual level of activity? a. Total materials variance b. Total materials regression c. Total materials cost d. Total materials margin e. None of these
The following direct materials and direct labor data pertain to the operations of Sunland Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $290 $12.50 per hour per ton per hour $292 per ton Quantities. Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used. 4,200 hours 1,000 tons 4,290 hours 990 tons
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (16 pounds @ $4 per pound) $ 64 Direct labor (3 hours @ $15 per hour) 45 During May the company incurred the following actual costs to produce 8,000 units. Direct materials (131,100 pounds @ $3.80 per pound). Direct labor (27,300 hours @ $15.10 per hour) AR-Actual Rate SR Standard Rate AQ-Actual Quantity SQ = Standard Quantity AP Actual Price SP- Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 $ 498,180 412,230 Required 2
Which of the following is the correct formula for the direct materials quantity variance? O a. (Actual Quantity - Actual Price) - (Standard Quantity Standard Price) O b. (Actual Quantity- Standard Quantity) * Actual Price O c. (Actual Price - Standard Price) × Actual Quantity O d. (Actual Quantity - Standard Quantity) x Standard Price
4. Compute the Material Price variance 5. Compute the Material Quantity variance 6. Compute the Total Labor variance 7. Compute the Labor Price variance 8. Compute the Labor Quantity variance 9. Compute the Total Manufacturing Overhead variance 10. Which variance(s) would be the responsibility of the Production Manager? 11. Which variance(s) would be the responsibility of the Purchasing Manager? Show all calculations for each item step-by-step
Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance Direct labor time variance
The labor efficiency variance is the difference between the actual quantity of hours at the standard rate and the standard direct labor hours at the standard rate. A. True B. False
Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.35 feet of leather and predicts leather will cost $4.20 per foot. Suppose Perfect Ret made 85 collars during February. For these 85 collars, the company actually averaged 2.50 feet of leather per collar and paid $3.80 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 6. Calculate the direct materials price and quantity variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 6 Calculate the standard direct materials cost per unit. Note: Round your answer to 2 decimal places. Standard Direct Materials per Collar Reg 2 and 3>
1. Calculate the total direct materials variance and total direct labour variance, together with their respective sub-variances. 2. Show how he derived the percentages quoted in his statement
4.2.1 Calculate the material quantity variance. 4.2.2 Calculate the variable manufacturing overhead efficiency variance. 4.2.3 Fixed manufacturing overhead volume variance.