Please provide this question solution general accounting Select the correct statement from the following, assumingCamacho Company had a favorable direct materials pricevariance of $2,000 and an unfavorable direct materials usagevariance of $1,200.The total direct materials variance is $3,200 favorable.- The total direct materials variance is $3,200 unfavorable.- The total direct materials variance is $800 favorable.- The total direct materials variance is $800 unfavorable.

Step 1: Define Standard CostingIn today's cut-throat competition, business needs to work with high…

Answered: Select the correct statement from the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12EA: Acme Inc. has the following information available: A. Compute the material price and quantity, and...

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Refer to the information for Cinturon Corporation on the previous page. Required: 1. Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. 2. CONCEPTUAL CONNECTION Suppose the Boise plant manager investigates the materials variances and is told by the purchasing manager that a cheaper source of leather strips had been discovered and that this is the reason for the favorable materials price variance. Quite pleased, the purchasing manager suggests that the materials price standard be updated to reflect this new, less expensive source of leather strips. Should the plant manager update the materials price standard as suggested? Why or why not?
Assume (1) the quantity of materials purchased equals the quantity used in production, (2) the materials price variance is $400 unfavorable, and (3) the materials quantity variance is $200 favorable. Given these assumptions, which of the following statements is true? Multiple Choice The materials spending variance must be $200 favorable. The materials spending variance must be $600 favorable. The materials spending variance must be $200 unfavorable. The materials spending variance must be $600 unfavorable.
Longman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.9 pound per glass at a cost of $0.50 per pound. The actual result for one month's production of 7,100 glasses was 1.4 pounds per glass, at a cost of $0.40 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. .....
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A company has a $1,300 unfavorable materials cost variance and a $900 favorable materials efficiency variance. What is the total direct materials variance?
Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $8 per hour) Fixed overhead (6 hours @ $11 per hour) $ 132.00 84.00 48.00 66.00 $ 330.00 Standard cost per unit Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 50,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (6 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 35,000 210,000 40,000 240,000 45,000 270,000 $ 2,640,000 $ 1,680,000 $ 2,640,000 $ 2,640,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 45,000 units; actual direct labor totaled 266,000 hours. Units produced were assigned the following…
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The following data relate to the direct materials cost for the production of automobile tires: Actual: 56,700 lbs. at $2.05 per lb.Standard: 55,600 lbs. at $2.10 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Line Item Description Amount Variance Direct Materials Price Variance $fill in the blank 1 Direct Materials Quantity Variance $fill in the blank 3 Total Direct Materials Cost Variance $fill in the blank 5
The following data relate to the direct materials cost for the production of 2,300 automobile tires: Actual: 52,300 lbs. at $1.8 per lb. Standard: 50,700 lbs. at $1.85 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ ________ _________ Direct Materials Quantity Variance $. ________ ________ Total Direct Materials Cost Variance $. _______ ________ b. The direct materials price variance should normally be reported to the _____ . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the _____ . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the _____ .
Rayan Ltd has provided the following information:Quantity (kg) Unit Rate (Rs.) Total (Rs.)StandardMaterial X 10 2 20Material Y 20 3 60Material Z 20 6 120Total 50 200ActualMaterial X 5 3 15Material Y 10 6 60Material Z 15 5 75Total 30 150You are required to compute the following and interpret the result:a) Material cost varianceb) Material price variancec) Material usage variance Do not give answer in image
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Complete the table below for the missing variances. 1(Click the icon to view the table.) Calculate the variances and identify whether the variance is favorable (F) or unfavorable (U). (b) Total Direct Materials Variance $125 F (c) Total Direct Labor Variance $255 F (e) Total Variable Overhead Variance $175 F (f) Total Fixed Overhead Variance (1) F (d) Total Manufacturing Overhead Variance (2) F (a) Total Flexible Budget Product Cost Variance (3) F 1: Data Table Total Flexible Budget Product Cost Variance (a) Total Direct Total Direct Total Manufacturing Materials Variance Labor Variance Overhead Variance (b) (c) (d) Direct Materials Direct Materials Direct Labor Direct Labor…

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