Compute the two material variance. During May, Schultz Company produced 12,000 units of aproduct called Premium. Premium has a standardmaterials cost of three pieces per unit at $6 per piece. Theactual materials used consisted of 35,000 pieces at a cost of$175,000. Actual purchases of the materials amounted to45,000 pieces at a cost of $225,000. Compute the twomaterials variances.

Material Variances are calculated as below:Material Price VarianceMaterial Quantity Variance1…

Answered: During May, Schultz Company produced…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?
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.
Corolla Manufacturing has a standard cost for steel of $20 per pound for a product that uses 4 pounds of steel. During September, Corolla purchased and used 4,200 pounds of steel to make 1,040 units. They paid $20.75 per pound for the steel. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance for the month of September. What would change if Corolla had made 2,200 units?
Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $13.00 per gallon. During July, Scarlett Company purchased and used 7,470 gallons at an actual price of $12.60 to produce 2,050 units. What is the direct materials price variance?
Please answer both questions.
Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.00 (2 feet × $4.00 per foot). Last month, Acoma purchased and used 4,590 feet of direct materials, for which it paid $17,901. The company produced and sold 2,160 units during the month. Required: Calculate the direct materials price, quantity, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance $ (459) F F F
Acoma, Incorporated, has determined a standard direct materials cost per unit of $6.80 (2 feet x $3.40 per foot). Last month, Acoma purchased and used 4,420 feet of direct materials, for which it paid $14,586. The company produced and sold 2,060 units during the month. Required: Calculate the direct materials price, quantity, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance U
Oriole, Inc. uses a standard cost system in which direct materials are carried at standard cost. Standards for one unit of product are: standard quantity of 9.5 gallons and standard price $1.80 per gallon. During March, Oriole purchased 151, 600 gallons of direct materials at a cost of $301,600 and used 152, 100 gallons in production of 19,600 units. Calculate the direct materials price and quantity variances and indicate whether each variance is favorable or unfavorable. Direct materials price variance $□ Direct materials quantity variance $n Q.. uy
Oriole, Inc. uses a standard cost system in which direct materials are carried at standard cost. Standards for one unit of product are: standard quantity of 9.5 gallons and standard price $1.80 per gallon. During March, Oriole purchased 151,600 gallons of direct materials at a cost of $301,600 and used 152,100 gallons in production of 19,600 units. Calculate the direct materials price and quantity variances and indicate whether each variance is favorable or unfavorable. Direct materials price variance +A $ Direct materials quantity variance tA $ >
Acoma, Incorporated, has determined a standard direct materials cost per unit of $8.20 (2 feet x $4.10 per foot). Last month, Acoma purchased and used 4,480 feet of direct materials, for which it paid $17,920. The company produced and sold 2,050 units during the month. Required: Calculate the direct materials price, quantity, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance
The standard cost of Wonder Walkers includes 3 units of direct materials at $9.00 per unit. During July, the company buys 40,000 units of direct materials at $8.25 and uses those materials to to produce 15,000 units. Compute the total, price, and quantity variances for materials.

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