Answered: Direct materials standard...... 8…

Name: A manufacturing company reports the following for one of its products.
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: A manufacturing company reports the following for one of its products. Compute the direct materials (a) price variance and (b) quantity variance and classify each as favorable or unfavorable. Direct materials standard......8 pounds @ $6 per pound83,0

Business

Accounting

Direct materials standard...... 8 pounds @ $6 per pound 83,000 pounds @ $5.80 per pound Actual direct materials used.. Actual finished units produced .... 10,000

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

Required A Required B Calculate the variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Variances
Please solve all questions
Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (l.e., zero variance). Do not round Intermediate calculations.) Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance Answer is not complete. $ Unfavorable (4,200) S (4,200) Unfavorable S (2,100) Unfavorable $ (4,400) Unfavorable $ (11,200) Unfavorable 2,750 Favorable Unfavorable Unfavorable $ $ (1,260.00) $ (5,700) 00000000
Which of the following factor may not be included in the computation of the total materials variance? Group of choices: Number of hours Quantity purchased Quantity sold Actual price
What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
Explain how to prepare production cost report using the weighted average method.
Determine the variances for A, B, and C.
The analysis of variance is an essential management accounting approach used to determine the cost of a product and its profitability. Managers use variance analysis to make judgments regarding the expenses of labour and materials that are incurred as a result of the production of a product or the provision of a service. In relation to the above, critically appraise five (5) differences between fixed and variable costs along with examples of each cost. Critically evaluate the purposes and features of marginal costing?
Please do not give solution in image format thanku
1-What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor. 2-How do you balance a firm’s need to succeed and the need for not asking the workers for perfection? 3-What two components are needed to determine a standard for materials? 4-What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
The principle of exceptions allows managers to focus on correcting variances between O a. competitor's costs and standard costs b. standard costs and actual costs O c. competitor's costs and actual costs d. variable costs and actual costs
1. Why are standard cost systems used? 2. How are standards set for material, labor, and overhead? 3. How is variance analysis used for control and performance evaluation?