During June, Danby Company's material purchases amounted to 6,600 pounds at a price of $7.90 per pound. Actual costs incurred in the production of 2,300 units were as follows: $ 131,835 ($18.70 per hour) 37,920 ($7.90 per pound) The standards for one unit of Danby Company's product are as follows: Direct labor: Direct material:| Direct Labor: Quantity, 3 hours per unit Rate, $18.60 per hour Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).). Round "Actual Price" and "Standard Price" to 2 decimal places. Actual Quantity Actual Material Cost pounds used Actual Price Direct Material: Quantity, 2 pounds per unit Price, $7.60 per pound per pound Direct-material price variance Direct-Material Price and Quantity Variances Projected Material Cost Actual Quantity pounds used Standard Price Direct-material variance per pound Standard Material Cost Standard Quantity pounds allowed X Direct-material quantity variance Standard Price per pound

During June, Danby Company's material purchases amounted to 6,600 pounds at a price of $7.90 per pound. Actual costs incurred in the production of 2,300 units were as follows: $ 131,835 ($18.70 per hour) 37,920 ($7.90 per pound) The standards for one unit of Danby Company's product are as follows: Direct labor: Direct material:| Direct Labor: Quantity, 3 hours per unit Rate, $18.60 per hour Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).). Round "Actual Price" and "Standard Price" to 2 decimal places. Actual Quantity Actual Material Cost pounds used Actual Price Direct Material: Quantity, 2 pounds per unit Price, $7.60 per pound per pound Direct-material price variance Direct-Material Price and Quantity Variances Projected Material Cost Actual Quantity pounds used Standard Price Direct-material variance per pound Standard Material Cost Standard Quantity pounds allowed X Direct-material quantity variance Standard Price per pound

Name: Required InformationDuring June, Danby Company's material purchases a
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Description: Required InformationDuring June, Danby Company's material purchases amounted to 6,600 pounds at a price of $7.90 per pound. Actual costsincurred in the production of 2,300 units were as follows:Direct labor:Direct material:$ 131,835 ($18.70 per hour

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

Required Information
During June, Danby Company's material purchases amounted to 6,600 pounds at a price of $7.90 per pound. Actual costs
incurred in the production of 2,300 units were as follows:
Direct labor:
Direct material:
$ 131,835 ($18.70 per hour)
$ 37,920 ($7.90 per pound)
The standards for one unit of Danby Company's product are as follows:
Direct Labor:
Quantity, 3 hours per unit
Rate, $18.60 per hour
Required:
Fill in the amounts in the tables below.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3
Fill in the amounts in the tables below.
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).). Round "Actual Price" and "Standard
Price" to 2 decimal places.
Actual Material Cost
Actual
Quantity
pounds used
x
X
Actual Price
Direct Material:
Quantity, 2 pounds per unit
Price, $7.60 per pound
per pound
Direct-material price variance
Direct-Material Price and Quantity Variances
Projected Material Cost
Actual Quantity
pounds used
x
x
Standard Price
Direct-material variance
per pound
< Required 1
Standard Material Cost
Standard Quantity
pounds allowed
*
Direct-material quantity variance
Required 2 >
Standard Price
per pound

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