Direct labor:Direct material:$169,400 for 12,320 hours$178,596 for 270,600 kilogramsRequired:1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance,and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Indicate the effect ofeach variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)Answer is complete but not entirely correct.Direct-material price varianceDirect-material quantity varianceDirect-material purchase price varianceDirect-labor rate varianceDirect-labor efficiency variance$$$$$10,26011,20015,440 Favorable XUnfavorable ✔Favorable X0X Unfavorable ✓0Unfavorable ✓Exercise 10-25 Computing Standard Direct-Material Cost (LO 10-2)Cayuga Hardwoods produces handcrafted jewelry boxes. A standard-size box requires 13 board feet of hardwood in the finishedproduct. In addition, 7.0 board feet of scrap lumber are normally left from the production of one box. Hardwood costs $14.00 per boardfoot, plus $11.50 in transportation charges per board foot.Required:Compute the standard direct-material cost of a jewelry box. (Do not round intermediate calculations. Round your final answer to 2decimal places.)Answer is complete but not entirely correct.Standard direct-material cost $ 262.50X Exercise 10-22 Straightforward Computation of Variances (LO 10-1, 10-3)Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The followingstandards have been set by the production-engineering staff and the controller.Direct Labor:Quantity, 0.27 hourRate, $13.50 per hourDirect Material:Quantity, 6 kilogramsPrice, $0.64 per kilogramActual material purchases amounted to 290,400 kilograms at $0.660 per kilogram. Actual costs incurred in the production of 44,000units were as follows:Direct labor:Direct material:$169,400 for 12,320 hours$178,596 for 270,600 kilogramsRequired:1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance,and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Indicate the effect ofeach variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

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Description: Direct labor:Direct material:$169,400 for 12,320 hours$178,596 for 270,600 kilogramsRequired:1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance,and the direct-labor r

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Exercise 10-22 Straightforward Computation of Variances (LO 10-1, 10-3) Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Quantity, 0.27 hour Rate, $13.50 per hour Direct Material: Quantity, 6 kilograms Price, $0.64 per kilogram Actual material purchases amounted to 290,400 kilograms at $0.660 per kilogram. Actual costs incurred in the production of 44,000 units were as follows: Direct labor: Direct material: $169,400 for 12,320 hours $178,596 for 270,600 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Exercise 10-22 Straightforward Computation of Variances (LO 10-1, 10-3) Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Quantity, 0.27 hour Rate, $13.50 per hour Direct Material: Quantity, 6 kilograms Price, $0.64 per kilogram Actual material purchases amounted to 290,400 kilograms at $0.660 per kilogram. Actual costs incurred in the production of 44,000 units were as follows: Direct labor: Direct material: $169,400 for 12,320 hours $178,596 for 270,600 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

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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