Q3 A company manufactured 30,000 units during the year 2017 by consuming 66,000 kg of raw material which was purchased at OMR 2 per kg. The engineering section of the company had estimated 2 kg of raw material for a unit output. The standard price of the raw material was fixed for OMR 3.00 per kg. Calculate material variances.

Q3 A company manufactured 30,000 units during the year 2017 by consuming 66,000 kg of raw material which was purchased at OMR 2 per kg. The engineering section of the company had estimated 2 kg of raw material for a unit output. The standard price of the raw material was fixed for OMR 3.00 per kg. Calculate material variances.

Name: Q3 A company manufactured 30,000 units during the year 2017 by consum
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Q3 A company manufactured 30,000 units during the year 2017 by consuming 66,000 kgof raw material which was purchased at OMR 2 per kg. The engineering sectionof the company had estimated 2 kg of raw material for a unit output. The standardprice of t

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

None
Nevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 perlabour hour.Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurredwas R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours. Use the information provided above to calculate the following manufacturing variances for March2022. Note: Each answer must state whether the variance is favourable or unfavourable.Labour rate varianceLabour efficiency varianceVariable overheads efficiency varianceVariable overheads expenditure variance
None
A5
8. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the production during the current month. The standard price for these raw materials is $5.2 per unit. How much is the materials price variance for the current month if Company S analyzes the variance at the point of purchase? $200 favorable O $200 unfavorable O $700 favorable $700 unfavorable
The standard cost of product B manufactured by Waterway Company includes 3 units of direct materials at $5.55 per unit. During June, the company purchases 29,000 units of direct materials at a cost of $5.22 per unit and uses 29,000 units of direct materials to produce 9,500 units of product B. Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $5.72 and the quantity purchased and used is 28,000 units. Materials variance Materials price variance Materials quantity variance
1
Assume the following: • The standard price per pound is $2.35. • The standard quantity of pounds allowed per unit of finished goods is 4 pounds. • The actual quantity of materials purchased was 53,000 pounds, whereas the quantity of materials used in production was 50,700 pounds. • The actual purchase price per pound of materials was $2.25. • The company produced 13,000 units of finished goods during the period. What is the materials quantity variance? Multiple Choice O о O $3,055 F $5,175 F $2,925 F $5,405 F
At the beginning of 2021, ABC Manufacturing Ltd., adopted the following standards for its direct material costs: Input Cost per Output Unit Direct labour 5 hours at $18 per hour $ 90 During the most recent month 2,600 output units were produced with 14,100 hours used at a cost of $17.5 per hour. What were the direct labour price variance and quantity variance, respectively?
Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Your answer is correct. Standard materials price per pound $ (b) eTextbook and Media (c) Your answer is correct. Standard materials quantity per unit If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? eTextbook and Media Your answer is correct. What were the standard hours allowed for the units produced? Standard hours allowed 0.95 45,280 hours Attempts: 1 of 5 used 4 pounds…
A company has the following information in its standard cost card: £ Material 2.5kg at the price of £3/kg = 7.00 During the month the company recorded the following: Units produced = 2,500 units Material used = 7,850kg Material cost = £23,180 Calculate the material price variance. 2. Calculate the material usage variance. 3. Explain what is meant by the breakeven point, and its usefulness to a business.
X Paradise Corporation has determined a standard labor cost per unit of $28 (0.50 hours $56 per hour). Last month, Paradise incurred 982 direct labor hours, for which it paid $27,005. The company produced and sold 2,750 units during the month. Required: Calculate the direct labor rate, efficiency, and spending variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Round your intermediate calculations to 2 decimal places. Answer is complete but not entirely correct. $ 491 1,104 F F 4,995 F Direct Labor Rate Variance Direct Labor Efficiency Variance Total Direct Labor Spending Variance $ $