Frisco Company recently purchased Frisco Company recently purchased 164,000 units of raw material for $642,000.Three units of raw materials are budgeted for use in each finished goodmanufactured, with the raw material standard set at $23.00 for each completedproduct.Frisco manufactured 42,305 finished units during the period just ended and used153,037 units of raw material. If management is concerned about the timelyreporting of variances in an effort to improve cost control and bottom-lineperformance, what would the materials purchase price variance be?

Concept of Materials Purchase Price VarianceMaterials Purchase Price Variance is the difference…

Answered: Frisco Company recently purchased…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3CMA

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Cassara, Inc., had the following quality costs for the years ended December 31, 20X1 and 20X2: At the end of 20X1, management decided to increase its investment in control costs by 40% for each categorys items, with the expectation that failure costs would decrease by 25% for each item of the failure categories. Sales were 12,000,000 for both 20X1 and 20X2. Required: 1. Calculate the budgeted costs for 20X2, and prepare an interim quality performance report. 2. Comment on the significance of the report. How much progress has Cassara made?
USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
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Frisco Company recently purchased 164,000 units of raw material for $642,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $23.00 for each completed product. Frisco manufactured 42,305 finished units during the period just ended and used 153,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be? Answer?
Frisco Company recently purchased 164,000 units of raw material for $642,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $23.00 for each completed product. Frisco manufactured 42,305 finished units during the period just ended and used 153,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?
Frisco Company recently purchased 110,000 units of raw material for $594,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $18.00 for each completed product. Frisco manufactured 33,305 finished units during the period just ended and used 101,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be? Shailene Company has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000 direct labor hours were used, and 1,500 units of output were manufactured at a total cost of $72,000. Required: a. Determine the labor rate variance. b. Determine the labor efficiency variance.
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The following depicts a 6-month schedule for a project. After 3 months on the job (July 1), the contractor concluded that 20 percent of Activity F (Activities A, B, and D are completed) was completed, 80 percent of Activity C was completed, and 40 percent of Activity E was completed. The project has cost the contractor a total of $535. For this project, using earned value concepts, determine the schedule variance and the cost variance. State if the project is over or under budget and if it is ahead or behind schedule.
Can you please answer the general accounting question?
ACP Manufacturing has budgeted a total overhead cost of $850,000 and budgeted machine hours of 85,000 for the upcoming period. During the actual period, the total overhead incurred was $865,000, and actual machine hours used were 90,000. Find the applied overhead for the period and determine whether the overhead is overapplied or underapplied. Show your step-by-step solution.help
ACP Manufacturing has budgeted a total overhead cost of $850,000 and budgeted machine hours of 85,000 for the upcoming period. During the actual period, the total overhead incurred was $865,000, and actual machine hours used were 90,000. Find the applied overhead for the period and determine whether the overhead is overapplied or underapplied. Show your step-by-step solution.
Faulks Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element Variable Element per per Month Container Refurbished Revenue $5,400 Employee salaries and wages $46,300 $1,200 Refurbishing materials $ 700 other expenses $32,400 When the company prepared its planning budget at the beginning of August, it assumed that 23 containers would have been refurbished. However, 26 containers were actually refurbished during August. The amount shown for total expenses in the planning budget for August would have been closest to: Multiple Choice $128,100 $122,400 $11,904 $126,500

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