Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $12.40. During the month, 4,900 chairs were manufactured, using 34,000 yards at a cost of $11.66 per yard. Determine the following: Enter favorable variances as negative numbers. a.  Direct materials price variance $fill in the blank 1   b.  Direct materials quantity variance $fill in the blank 3   c.  Total direct materials cost variance $fill in the blank 5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
  1. Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $12.40. During the month, 4,900 chairs were manufactured, using 34,000 yards at a cost of $11.66 per yard.

    Determine the following: Enter favorable variances as negative numbers.

    a.  Direct materials price variance $fill in the blank 1  
    b.  Direct materials quantity variance $fill in the blank 3  
    c.  Total direct materials cost variance $fill in the blank 5  

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Performance measurements
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education