reported for the production of l100,000 toy boats:Direct material variances-solving for price and usage variancesrecently implemented a standard cost system and has designed the system to isolateFiberworks Company is a manufacturer of fiberglass toy boats. The company hasFue ly implemented a standard cost system and has designed the system to isolatesiances as soon as possible. During the month of May, the following results werenorted for the production of 100,000 toy boats:Direct materials (fiberglass) purchased ... . .Direct materials issued into production.200,000 pounds180,000 poundsStandard pounds allowed per boat1.75 poundsStandard price per pound....Cost of fiberglass purchased ..$7.00$1,420,000..Required:a. Calculate the actual cost per pound of fiberglass purchased during May.b. Calculate the direct materials purchase price variance for May.C. Calculate the direct materials usage variance for May.d. Comment on calculating the material price variance based on pounds purchasedrather than pounds issued into production.

Name: reported for the production of l100,000 toy boats:Direct material var
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: reported for the production of l100,000 toy boats:Direct material variances-solving for price and usage variancesrecently implemented a standard cost system and has designed the system to isolateFiberworks Company is a manufacturer of fiberglass toy

Standard cost system:- Standard Cost System (SCS) is a system used by manufacturers to have a…

Business

Accounting

Required: a. Calculate the actual cost per pound of fiberglass purchased during May. b. Calculate the direct materials purchase price variance for May. C. Calculate the direct materials usage variance for May. 1on pounds pu

Required: a. Calculate the actual cost per pound of fiberglass purchased during May. b. Calculate the direct materials purchase price variance for May. C. Calculate the direct materials usage variance for May. 1on pounds pu

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Required information [The following information applies to the questions displayed below.] A…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Q: Myers Corporation has the following data related to direct materials costs for November: actual…

A: The direct materials variances are computed to identify the excess/less costs incurred in the…

Q: a, b, & c

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Need answer

A: If you have any questions let me know in comment box thankyou for your question.

Q: Myers Corporation has the following data related to direct materials costs for November: actual cost…

A: Direct materials price variance = (Actual price - Standard price)*Actual quantity

Q: (b) Calculate the materials variance, and the price and quantity variances, assuming the purchase…

A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: SOLUTION- GIVEN, VARIABLE OVERHEAD RATE = $2 FIXED OVERHEAD RATE = $10 NORMAL LEVEL OF PRODUCTION =…

Q: Use the following information to answer questions 15 and 16. A company has the following information…

Q: Need answer of the question

A: If you have any help please let me know in comment box and then I will help you.

Q: 01. The following materials standards have been established for the product Wand: 10.0 kilograms…

A: Answer:- Material variance:- Management uses material variance analysis to determine how actual…

Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…

A: Flexible Budget :— It is calculated by multiplying standard cost per unit with actual units.…

Q: Luma Incorporated has provided the following data concerning one of the products in its standard…

A: Variances When the planned costs are compared with the actual costs, then the variations arising…

Q: A manufactured product has the following Information for August. Direct materials Direct labor…

A: STANDARD COST CARDStandard Cost Card represents the Standard Cost Required for Unit of…

Q: Prepare an income statement through gross profit for Bellingham Company for the month ending March…

A: Interpretation of data given: Standard Quantity=2.5*15000*3.75=1,40,625 Standard…

Q: A manufactured product has the following information for June. Standard Quantity and Cost 6 pounds @…

A: Direct labor rate variance = (SR - AR)*AHDirect labor efficiency variance = (SH - AH)*SR

Q: The following materials standards have been established for a particular product: Standard quantity…

A: variance is an difference between the actual and standard cost of production data.The variance can…

Q: Problem 10-45 Variances; Journal Entries; Missing Data (Appendix) (LO 10-3, 10-6, 10-9) Aquafloat…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: The following data pertains to the direct materials cost for the month of October: Standard costs…

A: Direct material efficiency variance = (Actual quantity×Standard Price) - (Standard quantity×Standard…

Q: Shadee Corp. expects to sell 570 sun visors in May and 430 in June. Each visor sells for $19.…

A: Solution 1: Computation of budgeted manufacturing cost per visor - Shadee Corp. Particulars Per…

Q: want answer of this quetion

A: The direct materials price variance is unfavorable for last month. This means the company paid more…

Q: Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard…

A: Actual Labor rate= Actual labor cost/ Actual Hours = 57895/2776 = $ 20.86

Q: Information about direct materials cost follows for Jennings Chemicals: Standard price per gallon…

A: Material price variance is difference between standard cost that a business pays for the direct…

Q: Myers Corporation has the following data related to direct materials costs for November: actual cost…

A: Formula: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual…

Q: Myers Corporation has the following data related to direct materials costs for November: actual cost…

A: Direct materials price variance is the difference between actual direct materials cost and standard…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: In budgeting as well as management accounting, variance analysis seems to be the examination of…

Q: The following materials standards have been established for a particular product: Standard…

Q: Myers Corporation has the following data related to direct materials costs for November: actual…

A: Direct material price variance = Actual quantity ×(Standard price - Actual price)

Q: Based on the following information, calculate the direct materials price variance. Actual costs…

A: Direct Material Price Variance is the difference in cost that results from price being different to…

Q: MATERIALS MIX VARIANCE

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

reported for the production of l100,000 toy boats:
Direct material variances-solving for price and usage variances
recently implemented a standard cost system and has designed the system to isolate
Fiberworks Company is a manufacturer of fiberglass toy boats. The company has
Fue ly implemented a standard cost system and has designed the system to isolate
siances as soon as possible. During the month of May, the following results were
norted for the production of 100,000 toy boats:
Direct materials (fiberglass) purchased ... . .
Direct materials issued into production.
200,000 pounds
180,000 pounds
Standard pounds allowed per boat
1.75 pounds
Standard price per pound....
Cost of fiberglass purchased ..
$7.00
$1,420,000
..
Required:
a. Calculate the actual cost per pound of fiberglass purchased during May.
b. Calculate the direct materials purchase price variance for May.
C. Calculate the direct materials usage variance for May.
d. Comment on calculating the material price variance based on pounds purchased
rather than pounds issued into production.

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured AH = Actual Hours SH Standard Hours AR = Actual Rate SR = Standard Rate Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $12 per DLH 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.) Actual Cost Actual Results 46,100 pounds @ $8.20 per pound 22,500 hours @ $16.50 per hour $ 278,600 7,600 units Standard Cost
Subject: acounting
Please provide answer in text (Without image)
The following materials standards have been established for a particular product: Standard quantity per unit of output Standard price 4.9 pounds $13.70 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output 5,550 pounds $63,380 5,050 pounds 750 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month? Multiple Choice $5,710 U $15,702 U $18,838 U $6,850 U
please answer all with working please answer in text . answer all please please please 1. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for none effect.) 2. What is the materials quantity variance for March? 3. If Preble had purchases 182,000kg of materials at $7.40 per kg and used 160,000kg in productions, what would be the materials price variance efficiency for March? 4. If Preble had purchases 182,000kg of materials at $7.40 per kg and used 160,000kg in productions, what would be the materials quantity variance efficiency for March? 5. What is the labour rate variance for March? 6. What is the labour efficiency for March?
The following materials standards have been established for a particular product:Standard quantity per unit of output 2.6 metersStandard price $10.55 per meterThe following data pertain to operations concerning the product for the last month:Actual materials purchased 6,000 metersActual cost of materials purchased $59,400Actual materials used in production 5,600 metersActual output 2,200 unitsQuestion: What is the materials quantity variance for the month? (label whether favorable or unfavorable; no dollar sign and comma)
can you help please thank your for your time :)
Use this information to answer the question that follow.The following data relate to direct materials costs for February:Materials cost per yard: standard, $1.93; actual, $2.04Standard yards per unit: standard, 4.61 yards; actual, 5.10 yardsUnits of production: 9,500Calculate the direct materials price variance. a. $1,045.00 unfavorable b. $4,817.45 favorable c. $5,329.50 unfavorable d. $5,329.50 favorable
Please help me with all answers thanku
Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,700 pounds of material at $5.30 per pound; and standard costs for 4,410 pounds of material at $6.20 per pound. What is the direct materials price variance? a. $4,230 favorable b. $1,798 favorable c. $1,798 unfavorable d. $4,230 unfavorable
Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Compute the (1) direct materials price variance and (2) direct materials quantity variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. $ GA Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH @ $17 per DLH 3 DLH @ $12 per DLH 0 $ Actual Results 47,400 pounds @ $8.10 per pound 23,100 hours @ $17.50 per hour $ 286,100 0 0 7,800 units S $ 0 Standard Cost
1. What raw materials cost would be included in the company’s planning budget for March? 2. What raw materials cost would be included in the company’s flexible budget for March? 3. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.)