Direct Materials and Direct Labor VeriancesAt the beginning of June, Bezco Toy Company budgeted 10,000 toy action figures to be manufactured in June et standard direct moterials and direct laborcosts as follows:Direct materials$14,000Direct labor7,800Total$21,800The standard materials price is $0.40 per pound. The standard direct labor rate is s13.00 per hour. At the end of June, the actual direct materlals and directlabor costs were as follows:Actual direct materials$13,300Actual direct labor7,400Total$20,700There were no direct materiols price or direct labor rate varionces for June. In addition, assume no changes in the direct materials inventory balances in June.Bezco Toy Company actually produced 9,200 units during June.Determine the direct moteriois quantity and direct labor time variances. Round your per unit computations to two decimal places and round youranswers to the nearest dollar, If required. Enter a favorabie variance as a negative number using a minus sign and an unfavorable variance as e positivenumber.Direct materials quantity varianceUnfavorableUnfavorableDirect labor time variance

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Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 10,000 toy action figures to be manufactured in June et standard direct materials and direct labor costs as follows: Direct materials $14,000 Direct labor 7,800 Total $21,800 The standard materials price is $0.40 per pound. The standard direct labor rate is $13.00 per hour labor costs were as follows: the end of Junn, the actual direct materials and direct Actual direct materials $13,300 Actual direct labor 7,400 Total $20,700 There were no direct materials price or direct iabor rate varlences for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 9,200 units during June. Determine the direct moteriois quantity and direct inbir time varances. Round your per unit computations to two decimal places and round your nswers to the nearest dollar, If required. Enter a favorable variance as a negative number using a minus sign and an untavorable verance as e positive umber. Direct materials quantity variance Unfavorable Direct labor time variance Unfavorable

Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 10,000 toy action figures to be manufactured in June et standard direct materials and direct labor costs as follows: Direct materials $14,000 Direct labor 7,800 Total $21,800 The standard materials price is $0.40 per pound. The standard direct labor rate is $13.00 per hour labor costs were as follows: the end of Junn, the actual direct materials and direct Actual direct materials $13,300 Actual direct labor 7,400 Total $20,700 There were no direct materials price or direct iabor rate varlences for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 9,200 units during June. Determine the direct moteriois quantity and direct inbir time varances. Round your per unit computations to two decimal places and round your nswers to the nearest dollar, If required. Enter a favorable variance as a negative number using a minus sign and an untavorable verance as e positive umber. Direct materials quantity variance Unfavorable Direct labor time variance Unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Williams Manufacturing Company has established the following materials standards for a particular product: Standard quantity per unit of output 8.1 Pounds Standard price $15.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased 6,840 Pounds $93,500 Actual materials used in production 6,140 Pounds Actual output 1,300 Units What is the materials quantity variance for the month? Your instructor has provided the following variance formulas for you: Direct Materials Variances Materials Price Variance: AQ(AP - SP) Materials Quantity Variance: SP(AQ - SQ) K Prev 8 of 26
A manufactured product has the following information for June. Standard Actual Direct materials 7 lbs. @ $9 per lb. 55,000 lbs. @ $9.10 per lb. Direct labor 2 hrs. @ $15 per hr. 15,200 hrs. @ $15.50 per hr. Overhead 2 hrs. @ $12 per hr. $ 192,300 Units manufactured 7,800 Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers
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Performance Eval - Variances:
Pittman Framing's cost formula for its supplies cost is $1,120 per month plus $12 per frame. For the month of November, the company planned for activity of 610 frames, but the actual level of activity was 602 frames. The actual supplies cost for the month was $8,600. The spending variance for supplies cost in November would be closest to: Multiple Choice O $160 U $256 F $256 U $160 F
Standard Quantity or Hours Direct materials 3 feet ? hours Standard Price or Rate $ 11 per foot ? per hour Standard Cost $ 33 Direct labor During March, the company purchased direct materials for $111,300, all of which were used in the production of 3.200 units. In addition, 4,900 direct labor-hours were worked on the product during the month. The cost of this labor time was $95,550. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance Required: 1. For direct materials: $ 4,400 U $ 450 F $ 2,000 U a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor. a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production. c. Compute the standard hours allowed per unit of product. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required…
Pittman Framing's cost formula for its supplies cost is $1,220 per month plus $11 per frame. For the month of November, the company planned for activity of 620 frames, but the actual level of activity was 612 frames. The actual supplies cost for the month was $7,650. The spending variance for supplies cost in November would be closest to: Multiple Cholce $390 F $390 U $302 U $302 F
Variable Factory Overhead Variances; Journal Entries The Platter Valley factory of BybeeIndustries manufactures field boots. The cost of each boot includes direct materials, direct labor,and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assignsoverhead cost to products based on direct labor hours.The company budgeted $15,000 variable factory overhead cost and 2,500 direct labor hours tomanufacture 5,000 pairs of boots in March.The factory used 2,700 direct labor hours in March to manufacture 4,800 pairs of boots and spent$15,600 on variable overhead during the month.[LO 15-1, 15-2][LO 15-1, 15-2][LO 15-2, 15-3]Final PDF to printer656 Part Three Operational-Level Controlblo17029_ch15_621-670.indd 656 02/20/18 09:49 AMRequired1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, andthe efficiency variance for variable factory overhead for March. Round each variance to the nearestwhole number, and state…
Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours per unit of product 2.0 Budgeted finished units for the period 6,800 Actual number of finished units produced 5,200 Standard wage rate per direct labor hour (SP) $ 28.00 Direct labor costs incurred $ 299,000 Actual wage rate per direct labor hour (AP) $ 26.00 The direct labor rate variance for October, rounded to the nearest dollar, was: Multiple Choice $23,000 favorable. $51,200 unfavorable. $2,200 unfavorable. $20,400 favorable. $30,800 unfavorable.
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Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) $20.00 Direct labor (2 hrs. @ $15.00) 30.00 Standard prime cost per unit $50.00 The actual results for the year are as follows: Units produced: 490,000. Materials purchased: 3,430,000 pounds @ $5.85. Materials used: 2,940,000 pounds. Direct labor: 931,000 hours @ $12.36.
There were no beginning inventories. Q. Calculate the direct materials price variance.