Material and Labor VariancesThe following actual and standardActual Costscost data for direct material and direct labor relate to the production of 2,000 units of a product:Standard CostsDirect material 15,600 lbs.@ $5.3 16,000 lbs. @ $5.1Direct labor 24,800 hrs. @ $8.4 24,000 hrs. @ $8.7Determine the following variances:Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.Materials VariancesActual cost:Split cost:Standardcost:a. Materials priceb. Materials efficiency $Labor VariancesActual cost:Split cost:Standard cost:c. Labor rate$d. Labor efficieny $O

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Description: Material and Labor VariancesThe following actual and standardActual Costscost data for direct material and direct labor relate to the production of 2,000 units of a product:Standard CostsDirect material 15,600 lbs.@ $5.3 16,000 lbs. @ $5.1Direct lab

Introduction:- The following formulas used as follows under:- Actual cost =AQ×AP Split cost…

Business

Accounting

Do not use negative signs with any of your answers. Next to Materials Variances Actual cost: Split cost: Standard cost: a. Materials price b. Materials efficiency Labor Variances Actual cost: Split cost: Standard cost:

Do not use negative signs with any of your answers. Next to Materials Variances Actual cost: Split cost: Standard cost: a. Materials price b. Materials efficiency Labor Variances Actual cost: Split cost: Standard cost:

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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Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.
The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons
a. Direct materials price variance Unfavorable b. Direct materials quantity variance Favorable c. Direct materials cost variance Unfavorable
The standard price for direct materials is used in the calculation of which variances ? Neither the price variance nor the quantity variance The quantity variance but not the price variance Both the price variance and the quantity variance The price variance but not the quantity variance
а. Standard Cost per Unit for Direct Materials and Direct Labor b. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong с. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong
Which of the following is the difference between the actual cost of materials and thematerials cost allowed for the actual level of activity? a. Total materials variance b. Total materials regression c. Total materials cost d. Total materials margin e. None of these
Which of the following statements is true with respect to the materials price variance? Multiple Choice It is computed using the actual quantity of materials purchased. It is computed using the standard quantity of materials purchased. It is computed using the standard quantity of materials used in production. It is computed using the actual quantity of materials used in production.
The following direct materials and direct labor data pertain to the operations of Sunland Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $290 $12.50 per hour per ton per hour $292 per ton Quantities. Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used. 4,200 hours 1,000 tons 4,290 hours 990 tons
Which of the following is the correct formula for the direct materials quantity variance? O a. (Actual Quantity - Actual Price) - (Standard Quantity Standard Price) O b. (Actual Quantity- Standard Quantity) * Actual Price O c. (Actual Price - Standard Price) × Actual Quantity O d. (Actual Quantity - Standard Quantity) x Standard Price
The variable overhead efficiency variance is computed and interpreted. a) the same as; the same as b) the same as; differently than c) differently than; the same as d) differently than; differently than the direct-cost efficiency variance.
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Brown Corporation's May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (3 lb. @ $7.00/lb.) $21 $46,080 Actual (6,400 lb. @ $7.20/lb.) Direct labor Standard (0.5 hr. @ $19/hr.) $9.50 Actual (950 hrs. @ $18.70/hr.) 17,765 Variable overhead Standard (0.5 hr. @ $9/hr.) $4.50 Actual 9,300 $35 $73,145 Total
Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.35 feet of leather and predicts leather will cost $4.20 per foot. Suppose Perfect Ret made 85 collars during February. For these 85 collars, the company actually averaged 2.50 feet of leather per collar and paid $3.80 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 6. Calculate the direct materials price and quantity variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 6 Calculate the standard direct materials cost per unit. Note: Round your answer to 2 decimal places. Standard Direct Materials per Collar Reg 2 and 3>