ABC Company produces jackets. The following DM standards are for each jacket: Standard Quantity Standard Price 9 yards $4.00 per yard Fabric Actual results were as follows: Number of jackets produced Yards of fabric purchased Yards of fabric used Cost of fabric purchased The direct material price variance is: 7,000 70,000 65,000 $266,000 O$6,000 unfavorable $14,000 favorable $6,000 favorable $14,000 unfavorable None of the other answers are correct

ABC Company produces jackets. The following DM standards are for each jacket: Standard Quantity Standard Price 9 yards $4.00 per yard Fabric Actual results were as follows: Number of jackets produced Yards of fabric purchased Yards of fabric used Cost of fabric purchased The direct material price variance is: 7,000 70,000 65,000 $266,000 O$6,000 unfavorable $14,000 favorable $6,000 favorable $14,000 unfavorable None of the other answers are correct

Name: ABC Company produces jackets. The following DM standards are for each
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: ABC Company produces jackets. The following DM standards are for each jacket:Standard Quantity Standard Price9 yards$4.00 per yardFabricActual results were as follows:Number of jackets producedYards of fabric purchasedYards of fabric usedCost of fab

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

Variance Computations and Explanations Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of 4 yards of fabric at $5 per yard. The standards call for 2 hours of assembly at $13 per hour. The following data were recorded for October, the first month of operations: Fabric purchased Fabric used in production of 1,700 tents Direct labor used 9,000 yards x $4.80 per yard 7,000 yards 3,600 hours x $13.50 per hour (a) Compute all standard cost variances for materials and labor. Materials price variance (usage basis) $ Materials price variance (purchase basis) $ Materials quantity variance $ Labor rate variance $ Labor efficiency variance $ ♦ ♦ ◆ ◆ (b) Which of the following is the most likely explanation for a favorable materials price variance and an unfavorable materials quantity variance? OQuantity discounts and the use of highly skilled production employees. OLast minute purchases of raw materials from…
A company reports the following for one of its products. Direct materials standard (5 pounds @ $8 per pound) Actual units produced $ 40 per unit 80,000 units Actual cost of direct materials used 3,232,000 Compute the total direct materials cost variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Direct materials variance
help me
Information concerning Johnston Co.'s direct materials costs is as follows: Standard price per pound $ 8.35 Actual quantity purchased 3,580 pounds Actual quantity used in production 3,480 pounds Units of product manufactured 890 Materials purchase-price variance–favorable $ 1,045 Budget data for the period: Units to manufacture 1,190 Units of direct materials 4,760 pounds The actual purchase price per pound of direct materials (rounded to two decimal places) was: Multiple Choice $8.06. $8.02. $9.01. $8.39. $8.64.
Print Item Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $1.10 90 Actual quantity purchased and used in production 110 Standard quantity for units produced Actual labor rate per hour $15 Standard labor rate per hour $16 Actual hours 200 230 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance Material quantity variance Labor rate variance Labor efficiency variance 2$ B. What are some possible causes for this combination of favorable and unfavorable variances?
A company has determined that the standard for materials is 10 square feet at $4 per square foot. If a process produces 2000 units and uses 18 square feet per unit at $5 per square foot, then what is the materials quantity variance? Select one a $ 64,000 unfavorable b) $64, 000 favorable c) $18,000 unfavorable d) $ 18,000 favorable
All Vaughin Manufacturing produces a product requiring 4 pounds of material costing $3.50 per pound . During December All Vaughn purchased 5500 pounds of material for \$18480 and used the material to produce 500 products . What was the materials price variance for December ? $875 Favorable $5355 Unfavorable $ 770 Favorable $4480 unfavorable
An edible product has three ingredients, which are mixed according to the standard cost card as follows: Material £ E 8 kg at £3 per kg 24 F 2 kg at £10 per kg 20 G 5 kg at £6 per kg 30 In August, 4,000 units were produced and the following amounts of material were used: Material kg E 31,000 F 9,000 G 23,000 What were the material mix and yield variances for August?
Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is: Direct materials standard (7 Kilogram @ $2/Kilogram) Actual cost of materials purchased Actual direct materials purchased and used Multiple Choice $50,000 favorable. $22.500 unfavorable. $27,500 unfavorable. $50,000 unfavorable $22.500 favorable
The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units of product are as follows: Standard Costs Direct materials 1,040 kilograms at $8.98 Actual Costs Direct materials 2,000 kilograms at $8.40 The direct materials price variance is a.$1,160 unfavorable b.$603 favorable c.$1,160 favorable d.$603 unfavorable
Assume the following: • The standard price per pound is $2.35. • The standard quantity of pounds allowed per unit of finished goods is 4 pounds. • The actual quantity of materials purchased was 53,000 pounds, whereas the quantity of materials used in production was 50,700 pounds. • The actual purchase price per pound of materials was $2.25. • The company produced 13,000 units of finished goods during the period. What is the materials quantity variance? Multiple Choice O о O $3,055 F $5,175 F $2,925 F $5,405 F
Scotto Designs has the following standards for the production of scarves: Standard Quantity Standard Price Direct materials 1.2 yards per scarf $4.60 per yard Direct labor 0.15 hours per scarf $11.00 per hour The company used 985 yards of material in order to make 800 scarves in April. The company purchased 1,100 yards at $4.70 per yard. How much is the direct materials quantity variance? $110 favorable $117.50 unfavorable $8 unfavorable $705 unfavorable $115 unfavorable