Acme Inc. has the following information available:Actual price paid for material$0.90Standard price for material$0.80Actual quantity purchased and used in production100Standard quantity for units produced130Actual labor rate per hour$14Standard labor rate per hour$17Actual hours200Standard hours for units produced210A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.Material price variance$4Material quantity varianceLabor rate varianceLabor efficiency varianceB. What are some possible causes for this combination of favorable and unfavorable variances?%24%24%24

Name: Acme Inc. has the following information available:Actual price paid f
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Acme Inc. has the following information available:Actual price paid for material$0.90Standard price for material$0.80Actual quantity purchased and used in production100Standard quantity for units produced130Actual labor rate per hour$14Standard labo

ln cost accounting variance is calculated in order to understand the deviations from the actual, it…

Business

Accounting

Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $14 Standard labor rate per hour $17 Actual hours 200 210 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as Material price variance Material quantity variance Labor rate variance

Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $14 Standard labor rate per hour $17 Actual hours 200 210 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as Material price variance Material quantity variance Labor rate variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Answer with working+Formula

A: Step 1We can compute the direct material price and quantity variances: Formula: Direct material…

Q: Acme Inc. has the following information available: Actual price paid for material $1.000 Standard…

A: The variation between actual results and the budget or standard is referred as variance.

Q: Want Answer please provide Solutions

A: Step 1: Definition of Variance Analysis:Variance analysis is an important concept in management…

Q: Lido Company's standard and actual costs per unit for the most recent period, during which 400 units…

A: Material price variance = (Standard price - actual price)*actual quantity purchased Material…

Q: Basix Inc. calculates direct manufacturing labor variances and has the following information: 1.…

A: Labor efficiency variance is measured by the actual hours worked and the standard hours required for…

Q: Camila Company has set the following standard cost per unit for direct materials and direct labor.…

A: Lets understand the basics. Direct material price variance indicates the variance between the rate…

Q: Which of the following equations can be used to compute a labor rate variance (where AH = actual…

A: Labor rate variance is the difference of standard rate and actual rate of labor for actual hours…

Q: The formula to compute the direct labor rate variance is to calculate the difference between:…

A: The variance is the difference between the actual cost and budgeted cost.

Q: Your answer is incorrect. What was the master budget amount for fixed overhead? Master Budget Amount…

A: Cost variance analysis involves examining the difference between the actual cost of a project or…

Q: tity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material…

A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…

Q: A company applies overhead using machine hours. Additional information follows. Standard variable…

A: VARIABLE OH COST VARIANCE:Variable OH Cost Variance is the difference between standard variable OH…

Q: Use the information provided to answer the questions. Actual price paid per pound of material $14.00…

A: The variance is the difference between the actual data and standard output of the production.

Q: Acme Inc. has the following information available: $ 1.00 $ 1.20 Actual price paid for material…

A: Labor efficiency variance = (Actual labor hours - Standard labor hours) x Standard labor rate per…

Q: Direct materials quantity per unit Direct materials price per pound Direct labor hours per unit…

A: Solution: a. Normal standard cost & Ideal standard cost : Normal standard cost = (Direct…

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: 1. Raw Material Variance= Standard Quantity for Actual Output*Standard rate-Actual Quantity*Actual…

Q: Cost of goods sold Required: 1. Determine for the period the following items: a. Flexible budget for…

A: Overhead Variance is the variance in the total overhead cost variance is calculated considering the…

Q: Please calculate the change in operating income due to cost leadership. Label each component as to…

A: To calculate the change in operating income due to cost leadership, we need to analyze the…

Q: [The following information applies to the questions displayed below.] A manufactured product has the…

A: The direct material variation is the difference between actual costs incurred and the standard cost…

Q: Use the information provided to answer the questions. Actual price paid per pound of material Total…

A: DM price variance calculates, how much actual price has affected the total cost of direct material.…

Q: A company applies overhead using machine hours. Additional information follows. Standard variable…

A: The Variance is an analysis of difference between the actual result and budgeted result for an…

Q: Information about direct materials cost follows for Jennings Chemicals: Standard price per gallon…

A: Material price variance is difference between standard cost that a business pays for the direct…

Q: Sharp Company manufactures a product for which the following standards have been set: Standard…

A: Solution 1a: Material quantity variance (Unfavorable) 2250 / Standard price 5…

Q: 1) What is the labor efficiency variance for March? 2) What is the variable overhead rate for March?…

A: Labor Efficiency Variance:The labor efficiency variance measures the difference between the actual…

Q: The following information relates to production activities of Mercer Manufacturing for the year.…

A: Direct costs are the expenses that are directly used for the production of goods and services for…

Q: Hamrick Company employs a standard cost system in which direct materials inventory is carried at…

A: Formulas: Direct Materials Spending Variance = Standard material cost - Actual material cost Direct…

Q: Use the information provided to answer the questions. Actual Price Paid Per Pound of Material:…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all…

A: Variance refers to the difference that is calculated by taking the actual cost that is incurred in…

Q: A company reports the following for one of its products. Direct materials standard (4 pounds @ $2…

A: DIRECT MATERIAL COST VARIANCE Direct Material Cost Variance is the Difference between the Actual…

Q: The following information relates to production activities of Mercer Manufacturing for the year.…

A: Direct material variance :— It is the difference between actual direct material cost and standard…

Q: Acme Inc. has the following information available: Actual price paid for material Standard price for…

A: Material Price Variance = (Standard Price - Actual Price) x Actual Quantity Material Quantity…

Concept explainers

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.

Topic Video

Question

Acme Inc. has the following information available:
Actual price paid for material
$0.90
Standard price for material
$0.80
Actual quantity purchased and used in production
100
Standard quantity for units produced
130
Actual labor rate per hour
$14
Standard labor rate per hour
$17
Actual hours
200
Standard hours for units produced
210
A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.
Material price variance
$4
Material quantity variance
Labor rate variance
Labor efficiency variance
B. What are some possible causes for this combination of favorable and unfavorable variances?
%24
%24
%24

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Sunny Corporation has collected the following data for one of its products: Direct materials standard (3 pounds per unit @ $0.40/lb.) Actual direct materials purchased Actual Direct Materials Used (AQU) Actual Price (AP) paid per pound How much is the direct materials price variance? O A. $1,610 unfavorable B. $2,240 favorable C. $1,610 favorable O D. $2,240 unfavorable $1.20 per finished good 32,000 pounds 23,000 pounds $0.47
Please do not give solution in image format thanku
Please use letters and numbers seen in pictures for formulas. Need help with formulas
Do not give image format
Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) $ 30 Direct labor (2 hours @ $17 per hour) 34 Overhead (2 hours @ $18.50 per hour) 37 Standard cost per unit $ 101 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs $ 45,000 Indirect materials Indirect labor 180,000 Power 45,000 Maintenance 90,000 costs 360,000 Total var ble ove Fixed overhead costs. 24,000 80,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. 12,000 79,000 Total fixed overhead costs 195,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per pound) $…
Please solve a and b
Can you answer both of these questions
Please look at the questions on the first picture and answer them on secound picture. thanks for your time
Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 120 Actual labor rate per hour $15 Standard labor rate per hour $13 Actual hours 190 Standard hours for units produced 210 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance $fill in the blank 1 Material quantity variance $fill in the blank 3 Labor rate variance $fill in the blank 5 Labor efficiency variance $fill in the blank 7 B. What are some possible causes for this combination of favorable and unfavorable variances?
4.
Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
The following data relate to the direct materials cost for the production of automobile tires: Actual: 56,700 lbs. at $2.05 per lb.Standard: 55,600 lbs. at $2.10 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. Line Item Description Amount Variance 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