**Direct Materials Information for Speed Bump Production**Last month, Talley Corporation purchased and used the same quantity of material in producing its product, speed bumps for traffic control. Below is a summary of the direct materials information for both medium and large speed bumps.| **Category** | **Medium Speed Bump** | **Large Speed Bump** ||----------------------------------------|-----------------------|----------------------|| **Standard pounds per unit** | 15 | [Blank] || **Standard price per pound** | $1.00 | $1.80 || **Actual quantity purchased and used per unit** | 14 | 16 || **Actual price paid for material per pound** | $1.80 | $2.10 || **Direct materials price variance** | $1,120 U | $1,920 U || **Direct materials quantity variance** | $100 F | [Blank] || **Total direct material variance** | $1,020 U | $480 U || **Number of units produced** | 100 | 400 |**Key Terms:**- **Standard Pounds per Unit:** The expected amount of material (in pounds) designated for each unit of product.- **Standard Price per Pound:** The predetermined cost per pound of material.- **Actual Quantity Purchased and Used per Unit:** The real amount of material (in pounds) used for each unit.- **Actual Price Paid for Material per Pound:** The real cost per pound paid for the material.- **Direct Materials Price Variance (U = Unfavorable, F = Favorable):** The difference in cost due to the variance in price from standard. A value of "U" indicates a higher actual cost than expected.- **Direct Materials Quantity Variance:** The difference in cost due to the variance in the amount of material used from standard. A value of "F" indicates less material used than expected.- **Total Direct Material Variance:** The sum of price and quantity variances, representing the total deviation in material cost from standard expectations for the period. **Data Table Explanation**This table provides detailed information about direct materials used for two types of speed bumps: Medium speed bump and Large speed bump. Below is the breakdown of the details provided:### Direct Materials Information1. **Standard Pounds per Unit**: - **Medium Speed Bump**: 15 pounds - **Large Speed Bump**: Unknown (?)2. **Standard Price per Pound**: - **Medium Speed Bump**: $1.00 - **Large Speed Bump**: $1.803. **Actual Quantity Purchased and Used per Unit**: - **Medium Speed Bump**: Unknown (?) - **Large Speed Bump**: 16 pounds4. **Actual Price Paid for Material per Pound**: - **Medium Speed Bump**: $1.80 - **Large Speed Bump**: $2.105. **Direct Materials Price Variance**: - **Medium Speed Bump**: $1,120 Unfavorable (U) - **Large Speed Bump**: $1,920 Unfavorable (U)6. **Direct Materials Quantity Variance**: - **Medium Speed Bump**: 100 Favorable (F) - **Large Speed Bump**: Unknown (?)7. **Total Direct Material Variance**: - **Medium Speed Bump**: Unknown (?) - **Large Speed Bump**: $480 Unfavorable (U)8. **Number of Units Produced**: - **Medium Speed Bump**: 100 units - **Large Speed Bump**: 400 units### Graphical Representation or Diagram ExplanationThe table does not include any graphical elements or diagrams, focusing solely on tabulated numerical data to compare material usage and cost variances between two product types. The use of symbols "?" and letters "U" (Unfavorable) and "F" (Favorable) highlight areas of missing data and variance status, respectively.

Name: **Direct Materials Information for Speed Bump Production**Last month,
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Description: **Direct Materials Information for Speed Bump Production**Last month, Talley Corporation purchased and used the same quantity of material in producing its product, speed bumps for traffic control. Below is a summary of the direct materials informati

Variances are the difference between the standard set by the company and the company actually achieved in the current year. 1. Calculation of standard pound per unit for large speed bumps: Standard pound per unit=Standard quantityNumber of units produced =7,200400 =18 Therefor, the standard pound per unit is 18. Notes: Actual quantity=Actual quantity purchased and used×Number of unts produced =16×400 =6,400 Total direct material variance=Standard quantity×Standard price-Actual quantity×Actual price -$480=(Standard quantity×$1.80)-(6,400-$2.10) Standard quantity=7,200 2. Calculation of Direct material quantity variance for large speed bumps: Direct material quantity variance=Standard price×(Standard quantity-Actua quantityused) =$1.80×(7,200-6,400) =$1,440 Favorable Therefore, the direct material quantity is $1,440 Favorable.

Answered: Last month, Talley Corporation…

Business

Accounting

Last month, Talley Corporation purchased and used the same quantity of material in producing its product, speed bumps for traffic control.

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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