Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows:Quarter 1= 26,500 unitsQuarter 2 = 23,000 unitsQuarter 3 = 21,000 unitsQuarter 4 = 28,000 unitsEach unit of product requires three pounds of direct material. The company's policy is to begin each quarterwith 25% of that quarter's direct materials production requirements.Canyon expects to have 54,000 pounds of direct materials on hand at the beginning of Quarter 1.What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?

Particulars Quater 1 Quarter 2 Budgeted Sales in units 26500 23000 Raw materials required per…

arter 1 26,500 units arter 2 23,000 units arter 3 = 21,000 units arter 4 28,000 units h unit of product requires three pounds of direct material. The compa n 25% of that quarter's direct materials production requirements.

arter 1 26,500 units arter 2 23,000 units arter 3 = 21,000 units arter 4 28,000 units h unit of product requires three pounds of direct material. The compa n 25% of that quarter's direct materials production requirements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The standard cost card for product Alpha is as follows: £ Direct material 5kg@ £11.50 per kg 57.50 Direct Labour 4 labour hours @£9 per hour 36.00 93.50 In the period just ended 3,000 units were produced and costs were incurred as follows: Quantity Cost (£) Direct material 15900kg 180465 Direct labour 11550 hours 106260 286725 Required: Calculate the direct materials price variance for product Alpha. Calculate the direct labour rate variance for product Alpha. Explain the factors that need to be taken into account when deciding to investigate a variance.
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3. A product's standard cost card includes the following: 3 hours of labour at £10 per hour = £30 In March, the company used 27,000 hours at a cost of £285,000 in order to produce 8,500 units. What was the labour rate variance? (a) £15,000 A (b) £30,000 A £45,000 A (d) £15,000 F
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