E 6-2 Materials Price Variance Hogan Manufacturing Company has just adopted a standard cost system. You have been asked to analyze the materials purchases and usage for the month of August to determine the materials price variance to be recorded at the end of the month. During August, 5,000 gallons of a chemical were purchased at $3.10 per gallon. Only 4,600 STUKENT gallons were put into production. The standard price per gallon is $3.20. Compute the following variances: 4 1. The materials price variance if the chemical is carried in inventory at standard price (i.e., the price variance is accounted for at the time of purchase). 2. The materials price variance if the chemical is carried in inventory at actual price and is charged to Work-in-Process Inventory at the standard price (i.e., the price variance is accounted for at the time of use in production).

E 6-2 Materials Price Variance Hogan Manufacturing Company has just adopted a standard cost system. You have been asked to analyze the materials purchases and usage for the month of August to determine the materials price variance to be recorded at the end of the month. During August, 5,000 gallons of a chemical were purchased at $3.10 per gallon. Only 4,600 STUKENT gallons were put into production. The standard price per gallon is $3.20. Compute the following variances: 4 1. The materials price variance if the chemical is carried in inventory at standard price (i.e., the price variance is accounted for at the time of purchase). 2. The materials price variance if the chemical is carried in inventory at actual price and is charged to Work-in-Process Inventory at the standard price (i.e., the price variance is accounted for at the time of use in production).

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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8. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the production during the current month. The standard price for these raw materials is $5.2 per unit. How much is the materials price variance for the current month if Company S analyzes the variance at the point of purchase? $200 favorable O $200 unfavorable O $700 favorable $700 unfavorable
Direct materials variances Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.35 per pound. 16, 100 units used 36,200 pounds, which were purchased at $3.50 per pound. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and inpu
K Direct materials variances Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.50 per pound. 16,400 units used 36,500 pounds, which were purchased at $3.65 per pound. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 5,475 V Unfavorable Favorable Unfavorable ✓ a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance $ -4,425 X Check My Work Jhry Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost…
Direct materials variances Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.35 per pound. 16,200 units used 36,400 pounds, which were purchased at $3.55 per pound. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ fill in the blank 2 b. Direct materials quantity variance $ fill in the blank 4 c. Direct materials cost variance $ fill in the blank 6
In good accounting form, compute for the:1. Materials mix variance 2. Materials yield variance Marina bottlers inc, a leading soft drinks company is producing their bottle requirements. for each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb, p50/lbs; Material B @ 6 lb, p22/lbs and Material C @ 1.6 lbs, p15/lb. During the month of August, 25,000 cases were produced from an input of: Material Pounds Cost/lb A 63,700 P49.00 B 125,200 P20.50 C 48,100 P16.00
Question Content Area Ruby Company produces a chair that requires a standard 3 yards of material per unit. The standard price of one yard of material is $9.90. During the month, 6,700 chairs were manufactured, using 20,500 yards at a cost of $9.40 per yard. Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance. Enter favorable variances as negative numbers.
1. COMPUTE FOR THE MATERIALS MIX VARIANCE 2. COMPUTE FOR THE MATERIALS YIELD VARIANCE MARINA Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb, P50/lbs; Material B @ 6 lb, P22/lbs and Material C @ 1.6 lbs, P15/lb. During the month of August, 25,000 cases were produced from an input of: Material Pounds Cost/lb A 63,700 P49.00 B 125,200 20.50 C 48,100 16.00
X Paradise Corporation has determined a standard labor cost per unit of $28 (0.50 hours $56 per hour). Last month, Paradise incurred 982 direct labor hours, for which it paid $27,005. The company produced and sold 2,750 units during the month. Required: Calculate the direct labor rate, efficiency, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Round your intermediate calculations to 2 decimal places. Answer is complete but not entirely correct. $ 491 1,104 F F 4,995 F Direct Labor Rate Variance Direct Labor Efficiency Variance Total Direct Labor Spending Variance $ $
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2 The following company information is available for March. The direct materials price variance is: Direct materials purchased and used Standard costs for direct materials for March production Multiple Choice $9,200 unfavorable. $9,200 favorable. $9,000 favorable. 4,500 feet @ $98 per foot 4,600 feet @ $96 per foot