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Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of information. Required: Use the information in the table to determine the unknown amounts. You may assume that Ironwood does not keep any raw materials on hand. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). > Answer is complete but not entirely correct. Direct Materials Direct Labor Standard amount per pan produced 2.5 pound 1.10 hour per Standard price $ 4.20 $ 16.00 per hour pound Actual amount used per pan produced 2.4 pound 1.20 hour Actual price $ per 4.10 $ 15.50 per hour pound Actual number of pans produced and sold 2,500 pans 2,500 pans Direct materials price variance $ 1,050 F Direct materials quantity variance $ 600 F Direct materials spending variance $ 1,650 F Direct labor rate variance Direct labor efficiency variance Direct labor spending variance SASASA $ 4,000 F 1,500 U $ 2,500 U

Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of information. Required: Use the information in the table to determine the unknown amounts. You may assume that Ironwood does not keep any raw materials on hand. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). > Answer is complete but not entirely correct. Direct Materials Direct Labor Standard amount per pan produced 2.5 pound 1.10 hour per Standard price $ 4.20 $ 16.00 per hour pound Actual amount used per pan produced 2.4 pound 1.20 hour Actual price $ per 4.10 $ 15.50 per hour pound Actual number of pans produced and sold 2,500 pans 2,500 pans Direct materials price variance $ 1,050 F Direct materials quantity variance $ 600 F Direct materials spending variance $ 1,650 F Direct labor rate variance Direct labor efficiency variance Direct labor spending variance SASASA $ 4,000 F 1,500 U $ 2,500 U

FINANCIAL ACCOUNTING
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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Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of information. Required: Use the information in the table to determine the unknown amounts. You may assume that Ironwood does not keep any raw materials on hand. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). > Answer is complete but not entirely correct. Direct Materials Direct Labor Standard amount per pan produced 2.5 pound 1.10 hour per Standard price $ 4.20 $ 16.00 per hour pound Actual amount used per pan produced 2.4 pound 1.20 hour Actual price $ per 4.10 $ 15.50 per hour pound Actual number of pans produced and sold 2,500 pans 2,500 pans Direct materials price variance $ 1,050 F Direct materials quantity variance $ 600 F Direct materials spending variance $ 1,650 F Direct labor rate variance Direct labor efficiency variance Direct labor spending variance SASASA $ 4,000 F 1,500 U $ 2,500 U
Transcribed Image Text:Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system database but is still missing a few pieces of information. Required: Use the information in the table to determine the unknown amounts. You may assume that Ironwood does not keep any raw materials on hand. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). > Answer is complete but not entirely correct. Direct Materials Direct Labor Standard amount per pan produced 2.5 pound 1.10 hour per Standard price $ 4.20 $ 16.00 per hour pound Actual amount used per pan produced 2.4 pound 1.20 hour Actual price $ per 4.10 $ 15.50 per hour pound Actual number of pans produced and sold 2,500 pans 2,500 pans Direct materials price variance $ 1,050 F Direct materials quantity variance $ 600 F Direct materials spending variance $ 1,650 F Direct labor rate variance Direct labor efficiency variance Direct labor spending variance SASASA $ 4,000 F 1,500 U $ 2,500 U
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