Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Quantity and Cost 7 pounds @ $8 per pound 2 DLH @ $17 per DLH 2 DLH @ $12 per DLH Direct materials Direct labor Overhead Units manufactured Exercise 21-9 (Algo) Direct materials variances LO P3 Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AQ Actual Cost 59,900 $ X X 485,190 AP $ 8.10 $ 5,990 AQ 59,900 X X Actual Results 59,900 pounds @ $8.10 per pound 16,600 hours @ $17.50 per hour $ 209,600 8,500 units $479,200 SP $ 8.00 Direct materials price variance $5,990 Unfavorable Direct materials quantity variance 800 Unfavorable Total direct materials variance $1,210 Unfavorable *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. $ (800) Standard Cost SQ 60,000 X $ X X 480,000 SP $ 8.00
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Quantity and Cost 7 pounds @ $8 per pound 2 DLH @ $17 per DLH 2 DLH @ $12 per DLH Direct materials Direct labor Overhead Units manufactured Exercise 21-9 (Algo) Direct materials variances LO P3 Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AQ Actual Cost 59,900 $ X X 485,190 AP $ 8.10 $ 5,990 AQ 59,900 X X Actual Results 59,900 pounds @ $8.10 per pound 16,600 hours @ $17.50 per hour $ 209,600 8,500 units $479,200 SP $ 8.00 Direct materials price variance $5,990 Unfavorable Direct materials quantity variance 800 Unfavorable Total direct materials variance $1,210 Unfavorable *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. $ (800) Standard Cost SQ 60,000 X $ X X 480,000 SP $ 8.00
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
![Required information
Use the following information for the Exercises below. (Algo)
[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
Exercise 21-9 (Algo) Direct materials variances LO P3
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance by
selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.)
AQ
Actual Cost
X
X
59,900✔
Standard Quantity and Cost
7 pounds @ $8 per pound
2 DLH @ $17 per DLH
2 DLH @ $12 per DLH
485,190
AP ✓
$ 8.10
$ 5,990
AQ
59,900✔
✓$ 5,990
✓
X
X
Actual Results
59,900 pounds @ $8.10 per pound
16,600 hours @ $17.50 per hour
$ 209,600
8,500 units
$479,200
SP
$8.00
Direct materials price variance
Unfavorable
Unfavorable
Direct materials quantity variance
800
$1,210 X Unfavorable
Total direct materials variance
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
♥
303
$ (800)
Standard Cost
SQ ✓
60,000 X
X
X
480,000
SP
✓
$ 8.00✔](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c3606a6-6358-4824-810d-6cbb5e92ae68%2F38e37b2b-5677-4138-b2e7-25462fa4779a%2Fg3kikxo_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for the Exercises below. (Algo)
[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
Exercise 21-9 (Algo) Direct materials variances LO P3
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance by
selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.)
AQ
Actual Cost
X
X
59,900✔
Standard Quantity and Cost
7 pounds @ $8 per pound
2 DLH @ $17 per DLH
2 DLH @ $12 per DLH
485,190
AP ✓
$ 8.10
$ 5,990
AQ
59,900✔
✓$ 5,990
✓
X
X
Actual Results
59,900 pounds @ $8.10 per pound
16,600 hours @ $17.50 per hour
$ 209,600
8,500 units
$479,200
SP
$8.00
Direct materials price variance
Unfavorable
Unfavorable
Direct materials quantity variance
800
$1,210 X Unfavorable
Total direct materials variance
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
♥
303
$ (800)
Standard Cost
SQ ✓
60,000 X
X
X
480,000
SP
✓
$ 8.00✔
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