Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost. Ivanhoe has established thefollowing standards for one unit of product: standard quantity of 10 pounds, standard price $1.80 per pound. During January, Ivanhoepurchased 162,000 pounds of direct material at a cost of $308,000 and used 144,500 pounds in production of 19,100 units.Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable.Direct materials price variance$

Direct material price variance is one of material cost variance being used in business. It means…

Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost. Ivanhoe has established the following standards for one unit of product: standard quantity of 10 pounds, standard price $1.80 per pound. During January, Ivanho purchased 162,000 pounds of direct material at a cost of $308,000 and used 144,500 pounds in production of 19,100 units. Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable. Direct materials price variance $

Ivanhoe Industries uses a standard cost system in which direct material is carried at standard cost. Ivanhoe has established the following standards for one unit of product: standard quantity of 10 pounds, standard price $1.80 per pound. During January, Ivanho purchased 162,000 pounds of direct material at a cost of $308,000 and used 144,500 pounds in production of 19,100 units. Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable. Direct materials price variance $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Scarlett Company has a direct materials standard of 3 gallons of input at a standard price of $13.00 per gallon. During July, Scarlett Company purchased and used 7,470 gallons at an actual price of $12.60 to produce 2,050 units. What is the direct materials price variance?
Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 cha manufactured, using 40,000 yards at a cost of $7.50. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance Favorable Unfavorable Previous Next
Waterway, Inc. makes high-quality swimsuits. During the year, the company produced 801 suits, using 966 yards of material, and the company purchased 860 yards of material for $4,751. The direct materials standard for the swimsuits allows 1.14 yards of material at a standard price of $6 per yard.Calculate Waterway’s direct materials quantity variance for the year. (If variance is zero, select "Not Applicable" and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 15.) Direct material quantity variance $ UnfavorableFavorableNot Applicable
XYZ Company's standard materials cost per unit of output is $12 (3 pounds x $4). During July, the company purchases and uses 5,800 pounds of materials costing $22,910 in making 2,000 units of finished product. Compute the Total, Price, and Quantity Materials Variances.
Vikram Bhai
. Light Company manufactures product Alpha and the following information has been provided for the month of December: Standard costs: Direct material C 4 kg @ sh. 80 Direct material D 6 kg @ sh. 40 Actual data: Direct material C 30,000kg @sh. 82 Direct material D 16,000kg @sh. 36 Actual number of units were 8,000 units. Required: What is the material yield variance? Select one: A. 464,000A B. 1,904,000F C. 1,440,000F D. None of the above
Question: Calculating Material Variances: At Frigicor, The Standard Price For The M640 Electrical Relay (A Component Used In The Production ... Calculating Material Variances: At Frigicor, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $57. Standards call for 2.5 relays per unit of finished product. In July, the company purchased 150 relays for $8,900. The company used 104 relays in the production of 50 refrigeration units (4 relays were damaged in the installation process). Required: calculate the material price variance and the material quantity variance related to the M640 electrical relay. Indicate whether the variances are favorable or unfavorable. (show work)
For the raw materials used to make its stoves, Kleslia, SRL has a standard price of $10.92 per gram and standard quantity per unit output of 4.3 grams. Last month there were 8,500 grams of raw material purchased for a total cost of $87,140, while 8,966 grams of raw material were used in the production of 2,201 stoves. What was the materials price variance for the month? $BLANK (favorable or Unfavorable)
Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: Direct materials standard (7 pounds e $2.15/pound) Actual cost of materials purchased $ 15.05 per finished unit $ 351,750 153,000 pounds Actual direct materials purchased and used Multiple Choice $22,800 unfavorable. $47,300 unfavorable. $24,500 unfavorable. $22,800 favorable.
Please answer both questions.
Sheffield Company's standard materials cost per unit of output is $8.20 (2.00 pounds x $4.10). During July, the company purchases and uses 2,700 pounds of materials costing $14,580 in making 1,500 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) Total materials variance $ Materials price variance Materials quantity variance $ %24 %24
Woodside Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Style-R table is $7.20 based on 8 square feet of vinyl at a cost of $.90 per square foot. A production run of 1,000 tables in January resulted in usage of 8,300 square feet of vinyl at a cost of $.80 per square foot, a total cost of $7,055. If the materials price variance was recorded when the material was issued to production, that variance was: a. $290 favorable. b. $830 unfavorable. c. $290 unfavorable. d. $830 favorable.