Materials and Labor VariancesAt the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products:Direct materials (5 lbs. @ $4.00)Direct labor (2 hrs. @ $15.00)Standard prime cost per unit$20.00Labor rate variance30.00The actual results for the year are as follows:a. Units produced: 450,000.b. Materials purchased: 3,150,000 pounds @ $5.75.c. Materials used: 2,790,000 pounds.d. Direct labor: 990,000 hours @ $13.20.Required:1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.Labor efficiency variance$50.00Material price varianceMaterial usage variance2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.UnfavorableUnfavorableFavorableUnfavorable

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Description: Materials and Labor VariancesAt the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products:Direct materials (5 lbs. @ $4.00)Direct labor (2 hrs. @ $15.00)Standard prime cost per unit$20.00Labor rat

Material variance, is divided into material price variance and material usage variance, measures the…

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Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) Direct labor (2 hrs. @ $15.00) Standard prime cost per unit The actual results for the year are as follows: a. Units produced: 450,000. b. Materials purchased: 3,150,000 pounds @ $5.75. c. Materials used: 2,790,000 pounds. d. Direct labor: 990,000 hours @ $13.20. Labor rate variance $20.00 Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor efficiency variance 30.00 $ $50.00 Material price variance Material usage variance 2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Unfavorable Unfavorable Favorable Unfavorable

Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) Direct labor (2 hrs. @ $15.00) Standard prime cost per unit The actual results for the year are as follows: a. Units produced: 450,000. b. Materials purchased: 3,150,000 pounds @ $5.75. c. Materials used: 2,790,000 pounds. d. Direct labor: 990,000 hours @ $13.20. Labor rate variance $20.00 Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor efficiency variance 30.00 $ $50.00 Material price variance Material usage variance 2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Unfavorable Unfavorable Favorable Unfavorable

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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Question Grant Company's standard materials cost per unit of output is $10.00 (2.00 pounds x $5.00 per pound). During July, the company purchases and uses 2,420 pounds of materials costing $12,826 in making 1,100 units of finished product. Compute the total material variance. O $726 unfavorable O $1,826 favorable O $2,926 unfavorable O $1,826 unfavorable
Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) $20.00 Direct labor (2 hrs. @ $15.00) 30.00 Standard prime cost per unit $50.00 The actual results for the year are as follows: Units produced: 490,000. Materials purchased: 3,430,000 pounds @ $5.85. Materials used: 2,940,000 pounds. Direct labor: 931,000 hours @ $12.36.
Based on the attached image, answer the following question: 1. What is the direct-material price variance? 2. What is the direct-material quantity variance? 3. What is the labor rate variance?
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The following materials standards have been established for a particular product: Standard quantity per unit: 6.2 feet $ Stand price per foot: 13.60 The following data pertain to operations concerning the product for the last month: Actual materials purchased: 1,000 feet Actual cost of materials purchased: $ 13,300.00 Actual materials used in production: 400 feet Actual output: 60 units What is the materials price variance for the month? What is the materials quantity variance for the month?
Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 6,700 lb. Actual unit price of direct materials $5.60 per Ib. Units of finished product manufactured 3,220 units Standard direct materials per unit of finished product 2 lb. Direct materials quantity variance-unfavorable $1,482 Direct materials price variance-unfavorable $670 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials per unit
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A manufactured product has the following information for June. Standard Quantity and Cost Actual Results Direct materials 6 pounds @ $8 per pound 45,500 pounds @ $8.20 per pound Direct labor 2 DLH @ $15 per DLH 14,600 hours @ $15.60 per hour Overhead 2 DLH @ $12 per DLH $ 186,100 Units manufactured 7,500 units Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.)AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard Rate
Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 7,600 Ib. Actual unit price of direct materials $4.00 per Ib. Units of finished product manufactured 3,650 units Standard direct materials per unit of finished product 2 lb. Direct materials quantity variance-unfavorable $1,260 Direct materials price variance-unfavorable $1,520 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials per unit
Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) $20.00 Direct labor (2 hrs. @ $15.00) 30.00 Standard prime cost per unit $50.00 The actual results for the year are as follows: Units produced: 400,000. Materials purchased: 2,060,000 pounds @ $3.95. Materials used: 2,100,000 pounds. Direct labor: 825,000 hours @ $14.85. Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Material price variance $fill in the blank 1 Material usage variance $fill in the blank 3 2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor rate variance $fill in the blank 5 Labor efficiency variance $fill in the blank 7 Feedback Area Feedback
Total Labor VarianceRefer to the information for Tico Inc. on the previous page.Required:Calculate the total variance for production labor for the month of April. Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.03hour. During the month of April, 900,000 bottles were produced using 25,200 labor hours@ $15.00. The standard wage rate is $13.50 per hour.
Matt Company uses a standard cost system. Information for raw materials for Product RBI for the month of October is as follows: P1.60 Standard unit price P1.55 2,000 units Actual purchase price per unit Actual quantity purchased Actual quantity used 1,900 units 1,800 units Standard quantity allowed for actual production What is the materials purchase price variance?