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Direct materials information Standard pounds per unit.... Standard price per pound..... Actual quantity purchased and used per unit Actual price paid for material per pound.... Direct materials price variance... Direct materials quantity variance... Total direct material variance.. Number of units produced.. ...... Medium speed bump $ ....$ Large speed bump 15 1.00 $ ? 1.80 $ $1,120 U 100 F ? 100 ? 1.80 16 2.10 $1,920 U ? $480 U 400

Direct materials information Standard pounds per unit.... Standard price per pound..... Actual quantity purchased and used per unit Actual price paid for material per pound.... Direct materials price variance... Direct materials quantity variance... Total direct material variance.. Number of units produced.. ...... Medium speed bump $ ....$ Large speed bump 15 1.00 $ ? 1.80 $ $1,120 U 100 F ? 100 ? 1.80 16 2.10 $1,920 U ? $480 U 400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Direct Materials Information Analysis** This table represents the direct materials information for two different products: Medium Speed Bumps and Large Speed Bumps. The table compares key metrics and variance calculations used in manufacturing analysis. Below are the categories and data included in the table: ### Categories and Data 1. **Standard Pounds per Unit** - **Medium Speed Bump:** 15 pounds - **Large Speed Bump:** Data not provided 2. **Standard Price per Pound** - **Medium Speed Bump:** $1.00 - **Large Speed Bump:** $1.80 3. **Actual Quantity Purchased and Used per Unit** - **Medium Speed Bump:** Data not provided - **Large Speed Bump:** 16 pounds 4. **Actual Price Paid for Material per Pound** - **Medium Speed Bump:** $1.80 - **Large Speed Bump:** $2.10 5. **Direct Materials Price Variance** - **Medium Speed Bump:** $1,120 unfavorable (U) - **Large Speed Bump:** $1,920 unfavorable (U) 6. **Direct Materials Quantity Variance** - **Medium Speed Bump:** 100 favorable (F) - **Large Speed Bump:** Data not provided 7. **Total Direct Material Variance** - **Medium Speed Bump:** Data not provided - **Large Speed Bump:** $480 unfavorable (U) 8. **Number of Units Produced** - **Medium Speed Bump:** 100 units - **Large Speed Bump:** 400 units ### Explanation of Variances - **Price Variance (U: Unfavorable):** This occurs when the actual price paid for materials exceeds the standard price. - **Quantity Variance (F: Favorable):** This indicates that fewer materials were used than the standard, resulting in a cost savings. - **Total Direct Material Variance:** The combined effect of price and quantity variances on the overall cost. Unfavorable variance denotes additional cost, while favorable indicates savings. ### Summary This table serves as a tool to evaluate cost control and efficiency in the manufacturing process for different products. By analyzing these variances, companies can identify areas needing improvement to maximize profitability and resource utilization.
Transcribed Image Text:**Direct Materials Information Analysis** This table represents the direct materials information for two different products: Medium Speed Bumps and Large Speed Bumps. The table compares key metrics and variance calculations used in manufacturing analysis. Below are the categories and data included in the table: ### Categories and Data 1. **Standard Pounds per Unit** - **Medium Speed Bump:** 15 pounds - **Large Speed Bump:** Data not provided 2. **Standard Price per Pound** - **Medium Speed Bump:** $1.00 - **Large Speed Bump:** $1.80 3. **Actual Quantity Purchased and Used per Unit** - **Medium Speed Bump:** Data not provided - **Large Speed Bump:** 16 pounds 4. **Actual Price Paid for Material per Pound** - **Medium Speed Bump:** $1.80 - **Large Speed Bump:** $2.10 5. **Direct Materials Price Variance** - **Medium Speed Bump:** $1,120 unfavorable (U) - **Large Speed Bump:** $1,920 unfavorable (U) 6. **Direct Materials Quantity Variance** - **Medium Speed Bump:** 100 favorable (F) - **Large Speed Bump:** Data not provided 7. **Total Direct Material Variance** - **Medium Speed Bump:** Data not provided - **Large Speed Bump:** $480 unfavorable (U) 8. **Number of Units Produced** - **Medium Speed Bump:** 100 units - **Large Speed Bump:** 400 units ### Explanation of Variances - **Price Variance (U: Unfavorable):** This occurs when the actual price paid for materials exceeds the standard price. - **Quantity Variance (F: Favorable):** This indicates that fewer materials were used than the standard, resulting in a cost savings. - **Total Direct Material Variance:** The combined effect of price and quantity variances on the overall cost. Unfavorable variance denotes additional cost, while favorable indicates savings. ### Summary This table serves as a tool to evaluate cost control and efficiency in the manufacturing process for different products. By analyzing these variances, companies can identify areas needing improvement to maximize profitability and resource utilization.
**Educational Material on Direct Materials Information for Talley Corporation** Talley Corporation Procurement and Usage Analysis for Speed Bumps **Production Overview:** Last month, Talley Corporation purchased and used the same quantity of material in producing its speed bump product meant for traffic control. The task is to complete the given table based on provided details. **Table: Direct Materials Information for Medium Speed Bump** - **Standard Pounds per Unit:** 15 - **Standard Price per Pound:** $1.00 - **Actual Quantity Purchased and Used per Unit:** *(Information needed)* - **Actual Price Paid for Material per Pound:** $1.80 - **Direct Materials Price Variance:** $1,120 Unfavorable (U) - **Direct Materials Quantity Variance:** $100 Favorable (F) - **Total Direct Material Variance:** *(Information needed)* - **Number of Units Produced:** 100 **Notes:** - The "Standard Pounds per Unit" and "Standard Price per Pound" reflect the company's expected material usage and cost expectations. - Variances are categorized as "Unfavorable" (U) if actual costs exceed expected costs, and "Favorable" (F) if actual usage or costs are less than expected. - The table requires input for the "Actual Quantity Purchased and Used per Unit" and the "Total Direct Material Variance" to be fully complete. These will provide a comprehensive view of resource efficiency and cost management. - It is important to round your answers to two decimal places for precision. This exercise aims to enhance understanding of variance analysis in material procurement and usage, reflecting on cost management efficiency.
Transcribed Image Text:**Educational Material on Direct Materials Information for Talley Corporation** Talley Corporation Procurement and Usage Analysis for Speed Bumps **Production Overview:** Last month, Talley Corporation purchased and used the same quantity of material in producing its speed bump product meant for traffic control. The task is to complete the given table based on provided details. **Table: Direct Materials Information for Medium Speed Bump** - **Standard Pounds per Unit:** 15 - **Standard Price per Pound:** $1.00 - **Actual Quantity Purchased and Used per Unit:** *(Information needed)* - **Actual Price Paid for Material per Pound:** $1.80 - **Direct Materials Price Variance:** $1,120 Unfavorable (U) - **Direct Materials Quantity Variance:** $100 Favorable (F) - **Total Direct Material Variance:** *(Information needed)* - **Number of Units Produced:** 100 **Notes:** - The "Standard Pounds per Unit" and "Standard Price per Pound" reflect the company's expected material usage and cost expectations. - Variances are categorized as "Unfavorable" (U) if actual costs exceed expected costs, and "Favorable" (F) if actual usage or costs are less than expected. - The table requires input for the "Actual Quantity Purchased and Used per Unit" and the "Total Direct Material Variance" to be fully complete. These will provide a comprehensive view of resource efficiency and cost management. - It is important to round your answers to two decimal places for precision. This exercise aims to enhance understanding of variance analysis in material procurement and usage, reflecting on cost management efficiency.
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Large speed bump $ $ $ S 1.80 16 2.10 1,920 U 480 U 400
Transcribed Image Text:Large speed bump $ $ $ S 1.80 16 2.10 1,920 U 480 U 400
Large speed bump $ $ $ S 1.80 16 2.10 1,920 U 480 U 400
Transcribed Image Text:Large speed bump $ $ $ S 1.80 16 2.10 1,920 U 480 U 400
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