Concord Company's standard materials cost per unit of output is $10.25 (2.50 pounds x $4.10). During July, the company purchases and uses 2,400 pounds of materials costing $12,720 in making 1,200 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to O decimal places, e.g. 52.) Total materials variance $ Materials price variance $ Materials quantity variance $

Concord Company's standard materials cost per unit of output is $10.25 (2.50 pounds x $4.10). During July, the company purchases and uses 2,400 pounds of materials costing $12,720 in making 1,200 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to O decimal places, e.g. 52.) Total materials variance $ Materials price variance $ Materials quantity variance $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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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.
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