How much is the total materials variance?? Scorpion Production Company planned to use 1 yard of plasticper unit budgeted at $81 a yard. However, the plastic actuallycost $80 per yard. The company actually made 1,300 units,although it had planned to make only 1,100 units. Total yardsused for production were 1,320. How much is the totalmaterials variance?a. $16,200 Ub. $1,620 Uc. $1,320 Fd. $300 U

Step 1: Definition of Total Materials VarianceThe total materials variance is the difference between…

Answered: Scorpion Production Company planned to…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 17EA: The production cost for a waterproof phone case is $7 per unit and fixed costs are $23,000 per...

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The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of $97,000?
Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?
The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are 6,000, and variable costs are 12,000. Data for two months follow: For each month, make a single journal entry to charge overhead to Work in Process, to close Factory Overhead, and to record variances. Indicate the types of variances and state whether each is favorable or unfavorable. (Hint: You must first compute the flexible-budget and production-volume variances.)
Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
Sunland Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3600 units, although it had planned to make only 2800 units. Total yards used for production were 3660. How much is the total materials variance? A. $3660 F B. $1200 U C. $6480 U D. $64800 U
Domose Inc. planned to use $150 of material per unit but actually used $147 of material per unit, and planned to make 1,100 units but actually made 900 units The sales-volume variance for materials is ________. Select one: a. zero b. $30,000 favorable c. $30,000 Unfavorable d. $29,400 unfavorable e. $2,700 unfavorable
What is the amount of the Factory OH Controllable Variance, given the following info: Actual production = 15,000 units Actual Costs = $360,000.00 for variable FOH + $104,000.00 for fixed FOH Budgeted Costs = $450,000 (standard hours for 15,000 units produced of 60,000 hours * standard FOH rate of $7.50) The standard OH rate = $7.50 per machine hour ($6.20 for variable FOH and $1.30 for fixed FOH) based on 100% capacity of 80,000 machine hours Group of answer choices $14,000.00 unfavorable $12,000.00 unfavorable $12,000.00 favorable $26,000.00 unfavorable
A company has determined that the standard for materials is 10 square feet at $4 per square foot. If a process produces 2000 units and uses 18 square feet per unit at $5 per square foot, then what is the materials quantity variance? Select one a $ 64,000 unfavorable b) $64, 000 favorable c) $18,000 unfavorable d) $ 18,000 favorable
Woody Company produces a product that requires 2 standard gallons per unit. The standard price is $20 per gallon. If 4,000 units required 8,200 gallons which were purchased at $19.75 per gallon, what is the direct materials: A. price variance B. quantity variance C. cost variance
Dynondo Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit, and planned to make 1,500 units but actually made 1,800 units The flexible-budget variance for materials is ________. Select one: a. $3,600 favorable b. $1,800 favorable c. $1,500 unfavorable d. $1,800 unfavorable e. $3,600 unfavorable
Formidable Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @ $6 per machine hour Fixed overhead 4 machine hours @ $10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost $540,000 Actual fixed overhead cost $810,000 Using the two variance method, what is the budget variance? a.$30,000 (F) b.$30,000 (U) c.$70,000 (U) d.$70,000 (F)
Assume the following: • The standard price per pound is $3.00. • The actual quantity of materials purchased is 60,000 pounds. • The actual quantity of materials used in production is 62,000 pounds. • The actual purchase price per pound of materials was $3.10. What is the materials price variance? Multiple Choice O O $6,000 F $6,200 F $6,000 U $6,200 U

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