During June, Keating Company produced 11,000 rain ponchos using nylon. Nylon costed $0.80 per yard, which is $0.10 cheaper than the standard cost. It also used 6,000 direct labor hours at a rate of $13.00. Its direct materials standard is 2 yards p labor standard is 0.50 hour per poncho. Its materials usage variance was a favorable $1,800, and its labor rate variance was a favorable $1,200. Required: Complete the following: (Round the rates to two decimal places.) A. The actual quantity of materials used is B. The standard labor rate is $ per hour.

During June, Keating Company produced 11,000 rain ponchos using nylon. Nylon costed $0.80 per yard, which is $0.10 cheaper than the standard cost. It also used 6,000 direct labor hours at a rate of $13.00. Its direct materials standard is 2 yards p labor standard is 0.50 hour per poncho. Its materials usage variance was a favorable $1,800, and its labor rate variance was a favorable $1,200. Required: Complete the following: (Round the rates to two decimal places.) A. The actual quantity of materials used is B. The standard labor rate is $ per hour.

Name: During June, Keating Company produced 11,000 rain ponchos using nylon
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: During June, Keating Company produced 11,000 rain ponchos using nylon. Nylon costed $0.80 per yard, which is $0.10 cheaper than the standard cost. It also used 6,000 direct labor hours at a rate of $13.00. Its direct materials standard is 2 yards pl

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

April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $240,000, and it takes 5 feet of raw materials to produce one park bench. In August, the company produced 11,000 park benches. The standard cost for material output was $110,000, and there was an unfavorable direct materials quantity variance of $6,000. A. What is April Industries' standard price for one unit of material? Standard cost per unit $ B. What was the total number of units of material used to produce the August output? Actual quantity feet Units C. What was the direct materials price variance for August? Direct materials price variance $ Unfavorable v
La Barte Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity of direct labor used 710 hrs. Actual rate for direct labor $11.70 per hr. Bicycles completed in July 330 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $11.90 per hr. a. Determine the direct labor rate variance, time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct labor rate variance $fill in the blank 1 Direct labor time variance fill in the blank 3 Total direct labor cost variance $fill in the blank 5 b. How much direct labor should be debited to Work in Process?$fill in the blank 7
Need help with this question
Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost. Ivanhoe has established the following standards for one unit of product: standard quantity of 10 pounds, standard price $1.80 per pound. During January, Ivanhoe purchased 162,000 pounds of direct material at a cost of $308,000 and used 144,500 pounds in production of 19,100 units. Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable. Direct materials price variance $
Oxford Co. has a materials standard of 2.1 pounds per unit of output. Each pound has a standard price of $13 per pound. During February, Oxford Co. paid $57,700 for 4,910 pounds, which were used to produce 2,470 units. What is the direct materials price variance? Multiple Choice $6,130 unfavorable $6,690 favorable $6,690 unfavorable $6,130 favorable
Delmar Incorporated uses a standard cost system. Labor standards are 2.00 hours per widget at $15.10 per hour. During August, Delmar Incorporated paid its workers $260,832 for 17,160 hours. Delmar Incorporated produced 8,780 widgets during August. Required: Calculate the direct labor rate variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor efficiency variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Calculate the direct labor spending variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).
ABC Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): ABC Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. ABC Industries paid $39,370 for the 15,500 pounds of material. What was the direct materials price variance for July? What was the direct materials quantity variance for July? What is the total direct materials cost variance? Standard Quantity x Standard price = standard cost direct materials 5 pounds $2.60 per pound $18.00 Direct labor 1.25 hours $12.00 per hour $15.00 total prime cost $33.00
Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $10.60. During the month, 4,800 chairs were manufactured, using 33,300 yards at a cost of $10.07 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance
Dodge Company produces a single product. The company has set the following standards for materials and labor: Standard quantity or hours per unit Standard price or rate Standard cost per unit Direct Materials ? kilograms ? per kilogram ? Materials price variance Total materials variance Labour efficiency variance During the past month, the company purchased 7,000 kilograms of direct materials at a cost of $26,250. All of this material was used in the production of 1,300 units of product. Direct labor cost totaled $55,125 for the month. The following variances have been computed: Direct Labour 3 hours $15 per hour $45 $1,750 favourable $250 unfavourable $6,000 favourable Required: a) For direct materials, compute the standard price per kilogram, the standard quantity allowed for materials in total for the month's production, and the standard quantity per unit of product. b) For direct labour, compute the actual direct labour cost per hour for the month and the labour rate variance. Show…
Need help with this question
Company-A makes a hand soap called Simply Clean. Each bottle has a standard labor cost of 1.25 hours at $30.00 per hour. During June, Company-A manufactured 12,000 bottles. They used 17,000 hours at a cost of $510,000. Calculate the labor time variance, labor rate variance, and total labor variance.
A manufacturing company has a standard quantity of direct materials of 7 pounds per unit at a standard price of $2.20 per pound. In April the actual material price was $2.40 per pound and the company produced 5,600 units. If the company experienced a favorable material quantity variance of $6,820 during the month, how much was the actual quantity of material used? 35,500 pounds 32,542 pounds 42,300 pounds 36,100 pounds 41,500 pounds