Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materialsquantity variance is:Direct materials standard (7 Kilogram @ $2/Kilogram)Actual cost of materials purchasedActual direct materials purchased and usedMultiple Choice$50,000 favorable.$22.500 unfavorable.$27,500 unfavorable.$50,000 unfavorable$22.500 favorable< Prev9 of 10$ 14 per finished unit$ 322,500150,000 KilogramNext >

Name: Parallel Enterprises has collected the following data on one of its p
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Description: Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materialsquantity variance is:Direct materials standard (7 Kilogram @ $2/Kilogram)Actual cost of materials

Standard Costing Is The Costing System That Helps In Comparing The Actual Performance With The…

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arallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materia uantity variance is: Direct materials standard (7 Kilogram @ $2/Kilogram) Actual cost of materials purchased $ 14 per finished unit $ 322,500

arallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materia uantity variance is: Direct materials standard (7 Kilogram @ $2/Kilogram) Actual cost of materials purchased $ 14 per finished unit $ 322,500

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 8P: Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?
Jameson Company produces paper towels. The company has established the following direct materials and direct labor standards for one case of paper towels: During the first quarter of the year, Jameson produced 45,000 cases of paper towels. The company purchased and used 135,700 pounds of paper pulp at 0.38 per pound. Actual direct labor used was 91,000 hours at 12.10 per hour. Required: 1. Calculate the direct materials price and usage variances. 2. Calculate the direct labor rate and efficiency variances. 3. Prepare the journal entries for the direct materials and direct labor variances. 4. Describe how flexible budgeting variances relate to the direct materials and direct labor variances computed in Requirements 1 and 2.
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Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. A. Compute the material and labor variances. B. Comment on the results and possible causes of the variances.
April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $300,000, and it takes S feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $6,000. A. What is April Industries standard price for one unit of material? B. What was the total number of units of material used to produce the August output? C. What was the direct materials price variance for August?
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