During July, the cutting department completed 9,000 units of a product that had a standard materials cost of 2.5 square feet per unit at $2.25 per square foot. The actual materials purchased consisted of 18,000 square feet at $2.50 per square foot, for a total cost of $45,000. The actual material used during this period was 20,000 square feet. Compute the materials price and usage variances.

During July, the cutting department completed 9,000 units of a product that had a standard materials cost of 2.5 square feet per unit at $2.25 per square foot. The actual materials purchased consisted of 18,000 square feet at $2.50 per square foot, for a total cost of $45,000. The actual material used during this period was 20,000 square feet. Compute the materials price and usage variances.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 9P: USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted,...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
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