Current Attempt in Progress Waterway WaterWorks manufactures snorkel gear. During the past month, Washington purchased 2,800 pounds of plastic to use in its dive masks, at a cost of $5,600. The standard price for the plastic is $1.60 per pound. The company actually used 2,700 pounds of the plastic to produce 12,000 dive masks. Calculate Waterway's direct materials price variance for the month. (Round intermediate calculations to 5 decimal places, eg. 1.24638 and final answer to O decimal places, eg. 5,275) Direct material price variance eTextbook and Media Save for later $ Favorable Unfavorable Neither Favorable nor Unfavorable

Current Attempt in Progress Waterway WaterWorks manufactures snorkel gear. During the past month, Washington purchased 2,800 pounds of plastic to use in its dive masks, at a cost of $5,600. The standard price for the plastic is $1.60 per pound. The company actually used 2,700 pounds of the plastic to produce 12,000 dive masks. Calculate Waterway's direct materials price variance for the month. (Round intermediate calculations to 5 decimal places, eg. 1.24638 and final answer to O decimal places, eg. 5,275) Direct material price variance eTextbook and Media Save for later $ Favorable Unfavorable Neither Favorable nor Unfavorable

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

See similar textbooks

Similar questions

Sheridan WaterWorks manufactures snorkel gear. During the past month, Washington purchased 2,600 pounds of plastic to use in its dive masks, at a cost of $5,400. The standard price for the plastic is $1.50 per pound. The company actually used 2,500 pounds of the plastic to produce 17,000 dive masks.Calculate Sheridan’s direct materials price variance for the month. (Round intermediate calculations to 5 decimal places, e.g. 1.24638 and final answer to 0 decimal places, e.g. 5,275.) Direct material price variance $enter the direct material price variance in dollars rounded to 0 decimal places
Washington WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,000 pounds of plastic to use in its dive masks, at a cost of $6,800. The standard price for the plastic is $1.60 per pound. The company actually used 3,800 pounds of the plastic to produce 15,000 dive masks. Required Calculate Washington's direct materials price variance for the month. What's the equation/steps to do this problem?
Sheffield Enterprises purchased 54,000 gallons of direct materials during the year at a price of $2.00 per gallon. Sheffield's direct materials price variance was $4,320 Favorable. Calculate the standard price per gallon of direct materials. (Round answer to 2 decimal places, e.g. 15.25.) Standard price $ eTextbook and Media /gal
Sheffield Enterprises purchased 54,000 gallons of direct materials during the year at a price of $2.00 per gallon. Sheffield's direct materials price variance was $4,320 Favorable. Calculate the standard price per gallon of direct materials. (Round answer to 2 decimal places, e.g. 15.25.) Standard price $ /gal
Vaughn produces 5-foot USB cables. During the past year, the company purchased 175,000 feet of plastic-coated wire at a price of $ 0.30 per foot. The direct materials standard for the cables allows 6 feet of wire at a standard price of $ 0.34 per foot. During the year, the company used a total of 193,000 feet of wire to produce 34,000 5-foot cables. Calculate Vaughn' s direct materials quantity variance for the year. $ Direct material quantity variance Favorable
Swifty produces 5-foot USB cables. During the past year, the company purchased 180,000 feet of plastic-coated wire at a price of $0.50 per foot. The direct materials standard for the cables allows 6 feet of wire at a standard price of $0.52 per foot. During the year, the company used a total of 204,000 feet of wire to produce 35,000 5-foot cables. Calculate Swifty's direct materials quantity variance for the year. Direct material quantity variance Unfavorable Favorable Neither Favorable nor Unfavorable eTextbook and Media %24
Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to: Select one: a. $2,123 U b. $292 F c. $2,123 F d. $292 U
SEL 6 Corp's cost formula for its scuba diving operating cost is $2,910 per month plus $321 per scuba diving-day. For the month of April, the company planned for activity of 16 scuba diving-days, but the actual level of activity was 14 scuba diving-days. The JZ P 3's actual scuba diving operating cost for the month was $8,320. (I spending variance for scuba diving operating cost in April would be closest to: Q. The
Sheridan Gold manufactures award medals. In August, Sheridan produced 5,900 medals, 105 more than expected. During the month, the company purchased 1,350 ounces of gold for $1,092,000. The standard price for the gold is $813 per ounce. The company actually used 1,212 ounces of gold for production.Calculate Sheridan’s direct materials price variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct material price variance $ UnfavorableNot ApplicableFavorable
Concord Gold manufactures award medals. In August, Concord produced 4,300 medals, 300 more than expected. During the month. the company purchased 1,000 ounces of gold for $803,000. The standard price for the gold is $800 per ounce. The company actually used 900 ounces of gold for production. Calculate Concord's direct materials price variance for the month. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Direct material price variance
Perfect Builders makes all sorts of moldings. Its standard quantity of material allowed is 1 foot of wood per 1 foot of molding at a standard price of $2.00 per foot. During August, it purchased 500,000 feet of wood at a cost of $1.90 per foot, which produced only 499,000 feet of molding. Calculate the materials price variance and the materials usage variance, respectively. $50,000 F and $2,000 U $49,900 U and $2,000 F $49,900 F and $1,900 U $50,000 F and $1,900 U
Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.