Assume the following: . The standard price per pound Is $2.35. . The standard quantity of pounds allowed per unit of finlshed goods Is 4 pounds. The actual quantity of materlals purchased was 53,000 pounds, whereas the quantity of materlals used In production was 51,000 pounds. • The actual purchase price per pound of materlals was $2.25. • The company produced 13,000 units of finished goods during the perlod. What Is the materlals quantity varlance? Multiple Choice $4.700 F $2,250 F $2,350 F $4.500 F

Assume the following: . The standard price per pound Is $2.35. . The standard quantity of pounds allowed per unit of finlshed goods Is 4 pounds. The actual quantity of materlals purchased was 53,000 pounds, whereas the quantity of materlals used In production was 51,000 pounds. • The actual purchase price per pound of materlals was $2.25. • The company produced 13,000 units of finished goods during the perlod. What Is the materlals quantity varlance? Multiple Choice $4.700 F $2,250 F $2,350 F $4.500 F

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

During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $ 137,280 ($19.20 per hour) Direct material: $ 43,350 ($8.50 per pound) The standards for one unit of Danby Company’s product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.10 per hour Price, $8.20 per pound
Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity is given below:
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 materlals purchased was 53,000 pounds, whereas the quantity of materlals used In production was 51,000 pounds. The actual purchase price per pound of materlals was $2.25. • The company produced 13,000 units of finlshed goods during the perlod. What Is the materlals quantity varlance? Multiple Choice $4.700 F $2,250 F $2,350 F $4,500 F
The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 per unit. The volume increased by 2,400 units to 14,000 actual total units. a. Determine the variable cost quantity factor. $ b. Determine the unit cost factor for variable cost of goods sold.
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $64 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 7.50 11.00 2.20 5.00 3.70 3.00 $ 32.40 ($410,000 total) ($246,000 total) A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume Andretti Company has sufficient capacity to produce 102,500 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 25% above the present 82,000 units each year if it increased fixed selling expenses by $100,000. What is the financial advantage (disadvantage) of investing an additional $100,000 in fixed selling expenses? 1-b. Would the additional…
Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 9.50 11.00 3.70 6.00 ($510,000 total) 4.70 3.50 ($297,500 total) $ 38.40 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 106,250 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 25% above the present 85,000 units each year if it were willing to increase the fixed selling expenses by $120,000. What is the financial advantage (disadvantage) of investing an additional $120,000 in fixed selling expenses? 1-b. Would…
[The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 70,000 Variable expenses 38,500 Contribution margin 31,500 Fixed expenses 23,310 Net operating income $ 8,190 9. What is the break-even point in dollar sales? 10. How many units must be sold to achieve a target profit of $18,900? 11. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Lighthouse Company had the following information: At a manufacturing level of 5,000 units, variable and fixed manufacturing costs are $30 and $8 per unit, respectively. Selling price is $60 per unit. What is the total manufacturing cost for 10,000 units? a. $300,000 b. $380,000 c. $340,000 d. $600,000
Chenwang Manufacturing has 18,000 labor hours and 120,000 grams of material. The cost of labor per hour is $10, and material costs 60 cents per gram. The company manufactures three products: A, B and C. Quantity of material used per unit of each product, labor time used, demand, and selling price are given in the table below. Production has to equal or exceed demand. Image has been attached with the further details.
D’Souza Company sold 12,000 units of its product for $76.00 per unit. Cost of goods sold is $54.60 per unit. Each unit had $49.20 in variable cost of goods sold and variable selling and administrative expenses are $9.60 per unit. Compute gross profit under absorption costing.
[The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 9. What is the break-even point in dollar sales?
O During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per pound. Actual costs incurred in the production of 1,000 units were as follows: Direct labor: Direct material: $ 90,396 ($18.6 per hour) $ 24,420 ($8.25 per pound) The standards for one unit of Fraser Company's product are as follows: Direct labor: Quantity, 2.9 hours per unit Rate, $18.4 per hour Direct material: Quantity, 1.5 pounds per unit Price, $7.75 per pound Required: Compute the following variances for the month of June. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) 1. Direct-material price variance 2 Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance