Aquatic Marine Store Company Aquatic Marine Stores Company manufactures decorative fittings forluxury yachts which require highly skilled labor, and special metallicmaterials. Aquatic uses standard costs to prepare its flexible budget.For the first quarter of 2011, direct material and direct labor standardsfor one of their popular products were as follows:Materials: 1.5 pounds per unit; $4.00 per poundLabor: 2.0 hours per unit; $18.00 per hourDuring the first quarter, Aquatic produced 5,000 units of this product.At the end of the quarter, an examination of the materials recordsshowed that the company used 6,600 pounds of materials and actualtotal material costs were $27,900. How much is the direct materialsprice variance?

Explanation of Direct Materials Price Variance:Direct Materials Price Variance measures the…

Answered: Aquatic Marine Stores Company…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...

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Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
TIB makes custom guitars and prepared the following sales budget for the second quarter It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000. Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30. 2018.
Oceanside Marine Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Oceanside uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 1 pound per unit; $11 per pound Direct labor: 4 hours per unit; $20 per hour Oceanside produced 3,000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 7,500 pounds of direct materials and actual total materials costs were $99,300. What is the direct materials cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) OA. $6,720 Unfavorable OB. $16,800 Favorable OC. $6,720 Favorable OD. $16,800 Unfavorable C
Poseidon Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Poseidon uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 4 pounds per unit; $4 per pound Direct labor: 4 hours per unit; $15 per hour Poseidon produced 5,000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the direct labor cost variance was $6,000 F. Which of the following is a logical explanation for this variance? O A. The company paid a lower cost for the direct materials than allowed by the standards. O B. The company used fewer labor hours than allowed by the standards. O C. The company used a lower quantity of direct materials than allowed by the standards. O D. The company paid a lower cost per hour for labor than allowed by…
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Aquatic Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Aquatic uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 5 pounds per unit; $6 per pound Direct labor: 2 hours per unit; $17 per hour During the first quarter, Aquatic produced 3,000 units of this product. Actual direct materials and direct labor costs were $68,000 and $330,000, respectively. For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 3,000 units. O A. $18,000 O B. $15,000 OC. $90,000 O D. $68,000
Seaworthy Designs manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Seaworthy uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 4 pounds per unit; $6 per pound Direct labor. 2 hours per unit; $17 per hour During the first quarter, Seaworthy produced 4,000 units of this product. Actual direct materials and direct labor costs were $67,000 and $329,000, respectively For the purpose of preparing the flexible budget, what is the total standard direct labor cost at a production volume of 4,000 units? OA. $136,000 OB. $68,000 OC. $67,000 OD. $329,000
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Home Decor Company manufactures special metallic materials for luxury homes that require highly skilled labor. Home Decor uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct la standards for one of their popular products were as follows: Direct materials: 2 pounds per unit; $4 per pound Direct labor: 4 hours per unit; $16 per hour Home Decor produced 4,000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 25,000 direct labor hours and actual total direct labor costs were $378,000. What is direct labor cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) ..... A. $256,000 Favorable B. $256,000 Unfavorable C. $22,000 Favorable D. $22,000 Unfavorable
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