During April, 80,000 units of product were produced. The standard quantity of material allowed per unit was two pounds at a standard cost of $5 per pound. If there was a favorable materials usage variance of $40,000 for April, the actual quantity of materials used must have been   a. 168,000 pounds  b. 152,000 pounds

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A: The variance is the difference between the actual and standard cost of production data. The variance…

Q: Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per…

A: Labor efficiency variance is  calculated by multiply the standard labor rate per hour with the…

Q: A manufacturer reports the following standard cost card. For June, the company made 1,200 units and…

A: The total cost variance is equivalent to the contrast between actual expenses and planned expenses.…

Q: The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units…

A: The objective of the question is to calculate the direct materials price variance. The direct…

Q: Sheridan Company manufactures a product with a standard direct labor cost of two hours at $14 per…

A: Variances are calculated to determine the deviation of actual data from the standard data. The…

Q: Bounder Corp. purchased 22,000 pounds of materials in October at a total cost of $35,250. However,…

A: The variance is the difference between standard production and actual production data.

Q: Oxford company has a materials standard of 2.1 pounds per unit of output each pound has a standard…

A: FORMULA: Direct  Material quantity variance = (Actual quantity used - Standard quantity…

Q: The standard cost of product 999 includes 2 units of direct materials at $5.85 per unit. During…

A: Standard Costing is a concept of cost accounting where the standards or benchmarks for the cost of…

Q: Penny Company manufactures only one product and uses a standard cost system. The following…

A: Direct Labor Variance: Direct labor cost variation is defined as the difference between the standard…

Q: During the month of June, a company’s direct materials costs for the production of Product X were as…

A: Material variances refer to the difference between the actual costs incurred to procure direct…

Q: The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units…

A: Formula to calculate direct material quantity variance:Direct material quantity variance = (Standard…

Q: Matinna Co. maintains no inventories and has the following data pertaining to one of its direct…

A: DIRECT MATERIAL PRICE VARIANCE IS THE DIFFERENCE BETWEEN THE ACTUAL AMOUNT SPENT ON DIRECT MATERIAL…

Q: The following labor standards have been established for a particular product: standard labor hours…

A: Labor efficiency variance = (Standard hours - Actual hours worked) × Standard labor rate

Q: Blossom Company's standard labor cost of producing one unit of Product DD is 3.40 hours at the rate…

A: Direct labor variance is the difference between standard direct labor cost for actual production and…

Q: e total variance for production labor fo

A: Total variance for production labor = (Standard Rate * Standard Hours) – (Actual Rate * Actual…

Q: None

A: Given information, Actual cost of direct materials (AP) = $55.75 per poundStandard cost of direct…

Q: The following direct labor standards have been established for product k33L: Standard direct labor -…

A: Step 1: Direct labor variance occurs due to differences in the standard and the actual direct labor…

Q: OMalley's standard labor cost of producing one unit of Product A is 1.7 hours at a rate of $11.4 per…

A: Variances are difference between actual and standard cost.  Labor rate variance  ( standard rate -…

Q: Marin Company produces a product requiring 4 pounds of material costing $3.500 per pound. During…

A: Solution Given Standard Cost of material per pound $3.5 Standard quantity 4 pounds per…

Q: Oxford Co. has a materials standard of 2.1 pounds per unit of output. Each pound has a standard…

A:

Q: The Swenson Company has a standard costing system. The following data are available for June: Actual…

A: Material price variance is calculated as: = (Actual Price - Standard Price) * Actual Quantity price

Q: Direct material C   4 kg @ sh. 80 Direct material D   6 kg @ sh. 40 Actual data: Direct material…

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Q: Bailey's materials quantity variance for the current month was exactly one-half of its materials…

A: "Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Bailey’s standard labor cost of producing one unit of Product DD is 1.7 hours at a rate of $12.9 per…

A: Labor rate variance is the difference between the standard rate per hour and the actual rate per…

Q: Total Labor Variance Tico Inc. produces plastic bottles. Each bottle has a standard labor…

A: Total Labor Variance = Actual Labor Cost  - Standard Labor Cost

Q: Exeter Company has a materials standard of 1 pound per unit of output. Each pound has a standard…

A: Direct material price variance is the difference between the estimated costs of material and the…

Q: Queen Industries uses a standard costing system in the manufacturing of its single product. It…

A: Direct Labor Time Variance: Direct Labor Time Variance is also known as the Direct Labor Efficiency…

Q: The standards for product V28 call for 8.0 pounds of a raw material that costs $18.80 per pound.…

A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…

Q: None

A: The problem requires the determination of capital gain or loss from the sale of bonds. The capital…

Q: The standards for product G78V specify 5.3 direct labor-hours per unit at $13.50 per direct…

A: Labor Rate Variance = (SR - AR)*AH or                              =SR*AH - Actual Cost…

Q: Dodge Company produces a single product. The company has set the ollowing standards for materials…

A: Standard costing is a method of costing where the cost of each product is estimated as part of…

Q: Penny Company manufactures only one product and uses a standard cost system. The following…

A: Part (A) Total Standard Hours allowed  Direct Labor Time Variance = (Standard Hours - Actual Hours)…

Q: What is the labor efficiency variance for the month? Select one: a. $9,240 F b. $9,240 U C. 55,955 U…

A: Solution: Introduction: Under the standard Costing method, standard cost is a predetermined cost and…

Q: Company XYZ uses a single raw material in its production process. The standard price for a unit of…

A: Given the following information: Standard rate: $2.00 Raw material purchased or Units Actually…

Q: Chhom Corporation makes a product whose direct labor standards are 0.9 hours per unit and $21 per…

A: Labor Efficiency Variance = (Actual Hours - Standard Hours) x Standard Rate

Q: Ivanhoe Company purchased (at a cost of $14,960) and used 2,200 pounds of materials during May.…

A: Step 1:  Standard cost = 1,020 x 2 x $7 = $14,280  Actual cost = $14,960 Total materials variance =…

Q: The Russell Company provides the following standard cost data per unit of product: Direct material…

A: Lets understand the basics. Direct labor usage variance is a variance between the standard labor…

Q: Douglas Inc. has provided the following data concerning one of the products in its standard cost…

A: Labour efficiency variance is a measure of the difference between the actual amount of time taken by…

Q: During the month of April 20X1 Winston Ltd. produce 6,700 dodgits. The cost of the materials in…

A:

Q: The following standards have been established for a raw material used to make product O84:…

A: Material price variance :Difference between the actual costs and standard costs for the actual…

Q: A manufactured product has the following information for June. Standard Actual Direct materials 7…

A: Variance is the difference of the actual cost with the standard cost. The variance analysis helps…

Q: he standard cost of product 999 includes 2 units of direct materials at $5.90 per unit. During…

A: Variance analysis is quantitative method of evaluating Comparsion between actual and standard cost.…

Q: Medicox a producer of medical emergency kits has purchased (at a cost of P10,200) and used 2,400…

A: Purchase cost of materials=P10,200 Materials used in May month=2,400 pounds Production in month of…

Q: Calculate the total materials variance, and the price and quantity variances. Materials Variance…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.