Compound Q11H is a raw material used to make Grater Corporation's major product. The standard cost of compound Q11H is $23 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below: Cost of material purchased in October, per ounce $23.10 Material purchased in October, ounces 2,300 Material used in production in October, ounces 2,120 Actual output in October, units 600 The raw material was purchased on account. The Materials Price Variance for October would be recorded as a a. debit of $230 b. credit of $212 c. debit of $212 d. credit of $230

Compound Q11H is a raw material used to make Grater Corporation's major product. The standard cost of compound Q11H is $23 per ounce and the standard quantity is 3.8 ounces per unit of output. Data concerning the compound for October appear below: Cost of material purchased in October, per ounce $23.10 Material purchased in October, ounces 2,300 Material used in production in October, ounces 2,120 Actual output in October, units 600 The raw material was purchased on account. The Materials Price Variance for October would be recorded as a a. debit of $230 b. credit of $212 c. debit of $212 d. credit of $230

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 6P: RDI Products Co. manufactures a variety of products made of plastic and aluminum components. During...

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6 During the month of April 20X1 Winston Ltd. produced 6,700 dodgits. The cost of the materials in these dodgits was $48,240. Each dodgit used 4 kg of the material and it cost $1.80 per kg during the month. The standards for the production of dodgits for April were 4.2 kg of material per dodgit at a price of $1.60 per kg. The anticipated production for the month had been 6,500 dodgits. Using the reconciliation type of variance report, reconcile the standard cost and actual cost of the materials for dodgits for this period.
During June, Danby Company's material purchases amounted to 6,000 pounds at a price of $730 per pound. Actual costs incurred in the production of 2,00o units were as follows: Direct labor: $116,745 ($18.10 per hour) Direct material: $30,660 ($7.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct labor: Direct material: Quantity, 3 hours per unit Quantity, 2 pounds per unit Rate, $18 per hour Price, $7 per pound Required: Compute the direct material price and quantity variances, the direct material purchase price variance, and the directlabor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable,
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
Company produces and sells rattan baskets. The number of drifts produced are the corresponding total production costs for six months, which are representatives for the year, are as follows:Using the least squares method, the monthly fixed production cost is approximately a. P 1,500. b. P18,000. c. P 4,350. d. P52,200.
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) $ 43,350 ($8.50 per pound) Direct material: The standards for one unit of Danby Company's product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Rate, $19.10 per hour Quantity, 3 pounds per unit Price, $8.20 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) Direct-material price variance Unfavorable Direct-material quantity variance Unfavorable Direct-material purchase price variance Unfavorable Direct-labor rate variance Unfavorable Direct-labor efficiency variance Unfavorable
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During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.
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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: $90,396 ( $18.60 per hour) Direct material: per pound
During June, Danby Company's material purchases amounted to 10,920 pounds at a price of $5.30 per pound. Actual costs incurred in the production of 2,100 units were as follows: Direct labor: Direct material: $74,693 ($11.30 per hour) $45,633 ($5.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Quantity, 3 hours per unit Rate, $11.00 per hour Direct Material: Quantity, 4 pounds per unit Price, $5.10 per pound ok at Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no "Actual Price" and "Standard Price" to 2 decimal places.) Direct-Material Price and Quantity Variances Actual Material Cost Projected Material Cost Standard Material Cost Actual Quantity Actual Price Actual Quantity Standard…
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