Plato Company began operations on June 1, 2024. For its first month of operations, Plato Company established the following standards for one unit of its single product standard quantity direct materials 7 pounds 8 hours 8 hours direct labor variable overhead standard price $14 per pound $18 per hour $11 per hour Plato Company reported the following information for June: 1. 7,000 pounds of direct materials were purchased at a total cost of $113,750. 2. 5,400 direct labor hours were worked at a total cost of $75,600. 3. The variable overhead cost for the month totaled $52,950. 4. 460 units were produced. 5. At June 30, Plato Company had 3,200 pounds of direct materials on hand. Calculate the direct material quantity variance for June. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000).
Plato Company began operations on June 1, 2024. For its first month of operations, Plato Company established the following standards for one unit of its single product standard quantity direct materials 7 pounds 8 hours 8 hours direct labor variable overhead standard price $14 per pound $18 per hour $11 per hour Plato Company reported the following information for June: 1. 7,000 pounds of direct materials were purchased at a total cost of $113,750. 2. 5,400 direct labor hours were worked at a total cost of $75,600. 3. The variable overhead cost for the month totaled $52,950. 4. 460 units were produced. 5. At June 30, Plato Company had 3,200 pounds of direct materials on hand. Calculate the direct material quantity variance for June. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question

Transcribed Image Text:Plato Company began operations on June 1, 2024. For its first month
of operations, Plato Company established the following standards for
one unit of its single product
direct materials
standard quantity
7 pounds
8 hours
8 hours
standard price
$14 per pound
direct labor
variable overhead
$18 per hour
$11 per hour
Plato Company reported the following information for June:
1. 7,000 pounds of direct materials were purchased at a total cost
of $113,750.
2. 5,400 direct labor hours were worked at a total cost of $75,600.
3. The variable overhead cost for the month totaled $52,950.
4. 460 units were produced.
5. At June 30, Plato Company had 3,200 pounds of direct materials on
hand.
Calculate the direct material quantity variance for June.
If the variance is favorable, place a minus sign in front of your answer
(i.e., -5000). If the variance is unfavorable, simply enter your answer
as a number (i.e., 5000).
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education