Exercise 10-30 Reconstructing Standard-Cost Information from Partial Data (LO 10-1, 10-3) Part of your company's accounting database was destroyed when Godzilla attacked the city. You have been able to gather the ollowing data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during he period was used in production. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Standard Quantity per Unit of Output for Direct Material" to 2 decimal places.) Answer is not complete. Direct Labor Direct Material Standard price or rate per unit of input 20 O per hour hours per per Ib 8 Standard quantity per unit of output 4 O Ibs per unit Actual quantity used per unit of output Actual price or rate per unit of input unit hours per hour units 30 Ibs per unit 7 per lb units 3.5 21 Actual output 10,000 10,000 F Direct-material price variance Direct-material quantity variance $ 30,000 $ 20,000 $ 10,000 Total direct-material variance F Direct-labor rate variance Direct-labor efficiency variance 35,000 $ 100,000 F F Total direct-labor variance 65,000

Exercise 10-30 Reconstructing Standard-Cost Information from Partial Data (LO 10-1, 10-3) Part of your company's accounting database was destroyed when Godzilla attacked the city. You have been able to gather the ollowing data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during he period was used in production. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Standard Quantity per Unit of Output for Direct Material" to 2 decimal places.) Answer is not complete. Direct Labor Direct Material Standard price or rate per unit of input 20 O per hour hours per per Ib 8 Standard quantity per unit of output 4 O Ibs per unit Actual quantity used per unit of output Actual price or rate per unit of input unit hours per hour units 30 Ibs per unit 7 per lb units 3.5 21 Actual output 10,000 10,000 F Direct-material price variance Direct-material quantity variance $ 30,000 $ 20,000 $ 10,000 Total direct-material variance F Direct-labor rate variance Direct-labor efficiency variance 35,000 $ 100,000 F F Total direct-labor variance 65,000

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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Assume a company purchased direct material at less than its normal price but it was of such poor quality that the workers struggled significantly to make it into the finished product. So to try to make up for some of the time lost, the manufacturing supervisor brought in more senior level workers from another part of the factory. Given these two situations, which of the following variances would likely occur? Multiple Choice An unfavorable material quantity variance and a favorable material price variance. A favorable material quantity variance and an unfavorable material price variance. A favorable material quantity variance and a favorable labor rate variance. A favorable labor rate variance and an unfavorable labor efficiency variance. A favorable labor efficiency variance and a favorable labor rate variance.
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D Question 13 Five Rings, Inc, has collected the following data on one of its products: Direct materials standard (3 lbs.@ $.75/b.) Total direct materials cost variance- unfavorable Actual direct materials used Actual finished units produced The actual cost of the direct materials used is: O $85,450 O $165,000 O $120,800 O $176,200 O $132,000 Question 14 F2 F3 -O+ F6 $2.25per finished unit $11.200 165,000 lbs 33,000 units F7 F8
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