De Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 770 tablets during July. However, due to LCD defects, the company actually used 800 LCD displays during July. Each display has a standard cost of $12.50. Eight hundred LCD displays were purchased for July production at a cost of $9,400. Determine the price variance, quantity variance, and total direct materials cost variance for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance

De Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 770 tablets during July. However, due to LCD defects, the company actually used 800 LCD displays during July. Each display has a standard cost of $12.50. Eight hundred LCD displays were purchased for July production at a cost of $9,400. Determine the price variance, quantity variance, and total direct materials cost variance for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance

Name: Direct Materials VariancesDe Soto Inc. produces tablet computers. The
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Direct Materials VariancesDe Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced770 tablets during July. However, due to LCD defects, the com

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

Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.6 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,000,000 ounces of aluminum. The actual cost of aluminum was $0.18 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the total variance for aluminum for the month of April. Enter amount as a positive number and select Favorable or Unfavorable.$fill in the blank 1
April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 50,000 feet of raw material for $200,000, and it takes 6 feet of raw materials to produce one park bench. In August, the company produced 11,000 park benches. The standard cost for material output was $132,000, and there was an unfavorable direct materials quantity variance of $5,000. A. What is April Industries’ standard price for one unit of material? Standard cost per unit $fill in the blank 1 B. What was the total number of units of material used to produce the August output? Actual quantity feet fill in the blank 2 Units C. What was the direct materials price variance for August? Direct materials price variance $ fill in the blank 3
Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100 jackets, and he expects his June utilities cost to be $8,000 plus $0.60 per jacket. After the month ended, it was reported that 2990 jackets were sold in June and $10,190 was spent on utilities. What is the activity variance for utilities in June? Round to the nearest whole number. If the variance is Favorable, enter a positive value. If unfavorable, enter a negative value.
During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced 40,400 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow away. Unit sales were 38,900 scoops. Fixed overhead was applied at $0.75 per unit produced. Fixed overhead was underapplied by $2,800. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year's operations are as follows (on an absorption-costing basis): Sales (38,900 units @ $20) $778,000 Less: Cost of goods sold 547,560 Gross margin $230,440 Less: Selling and administrative expenses (all fixed) 185,500 Operating income $ 44,940 Required: 1. Calculate the cost of the firm's ending inventory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest dollar. $______ What is the cost of the ending inventory under variable costing? Round unit…
Boracay Company manufactures desks with vinyl tops. The standard material cost for the vinyl used for Model S desk is P27.00 based on 12 square feet of vinyl at a cost Ph2.25 per square foot. A production of run of 1,000 desks in March resulted in usage of 12,600 square feet of vinyl at a cost of Ph2.00 per square foot, a total cost of Ph 25,200. The usage variance resulting from the above production run was ? Ph 1,200 unfavorable Ph 1,350 unfavorable Ph 1,800 favorable Ph 3,150 favorable
Will Co. produces chairs. The standard direct material cost to produce one unit of chair is 4 meters of raw materials at P5.00 per meter. During 2020, 8,400 meters of raw materials were purchased at a cost of P20,160. All the purchased materials were actually used to produce 2,000 units of chairs. 1. Compute the actual price per meter material price and quantity variance and prepare journal entry to record the variance, assuming the price variance is determined at the time of usage.
A chair company set the following standards: Wood per chair: 7.5 feet. Cost per foot: $4.25. In June, it manufactured 20,000 chairs. The company purchased and used 300,000 feet of wood for $3.42 per foot. Calculate the materials price and efficiency variances.
Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 580 tablets during December. However, due to LCD defects, the company actually used 600 LCD displays during December. Each display has a standard cost of $15.00. Six hundred LCD displays were purchased for December production at a cost of $8,550. Determine the price variance, quantity variance, and total direct materials cost variance for December.
Swifty WaterWorks manufactures snorkel gear. During the past month, Washington purchased 3,400 pounds of plastic to use in its dive masks, at a cost of $7,000. The standard price for the plastic is $1.90 per pound. The company actually used 3,300 pounds of the plastic to produce 18,000 dive masks. Calculate Swifty's direct materials price variance for the month. (Round intermediate calculations to 5 decimal places, eg. 1.24638 and final answer to 0 decimal places, eg. 5,275.) Direct material price variance eTextbook and Media $
JanWay Corporation manufactures a decorative vase. The vases have a standard materials cost of 2 pounds of raw materials at $3/pound. During December 15,000 pounds of raw materials costing $3.50/pound were used in producing 3,000 vases. Calculate the materials price variance and the Materials quantity variance.
Benson's Doll Company produces handmade dolls. The standard amount of time spent on each doll is 1.50 hours. The standard cost of labor is $7.68 per hour. The company planned to make 7,700 dolls during the year but actually used 12,250 hours of labor to make 9,000 dolls. The payroll amounted to $97,388. Required a. Should labor variances be based on the planned volume of 7,700 dolls or the actual volume of 9,000 dolls? b. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours. c. Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U). d. Compute the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours. (Round "Standard price" and…
Glassica, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 2.00 pounds per glass at a cost of $1.00 per pound. The actual result for one month's production of 7,000 glasses is 1.2 pounds per glass, at a cost of $0.30 per pound. The direct materials efficiency variance is O 650 U O $6,930 F O $6,930 U O $5,800 F O $5,600 F TAZ