**Direct Materials Information Analysis**This table represents the direct materials information for two different products: Medium Speed Bumps and Large Speed Bumps. The table compares key metrics and variance calculations used in manufacturing analysis. Below are the categories and data included in the table:### Categories and Data1. **Standard Pounds per Unit** - **Medium Speed Bump:** 15 pounds - **Large Speed Bump:** Data not provided2. **Standard Price per Pound** - **Medium Speed Bump:** $1.00 - **Large Speed Bump:** $1.80 3. **Actual Quantity Purchased and Used per Unit** - **Medium Speed Bump:** Data not provided - **Large Speed Bump:** 16 pounds4. **Actual Price Paid for Material per Pound** - **Medium Speed Bump:** $1.80 - **Large Speed Bump:** $2.10 5. **Direct Materials Price Variance** - **Medium Speed Bump:** $1,120 unfavorable (U) - **Large Speed Bump:** $1,920 unfavorable (U)6. **Direct Materials Quantity Variance** - **Medium Speed Bump:** 100 favorable (F) - **Large Speed Bump:** Data not provided7. **Total Direct Material Variance** - **Medium Speed Bump:** Data not provided - **Large Speed Bump:** $480 unfavorable (U)8. **Number of Units Produced** - **Medium Speed Bump:** 100 units - **Large Speed Bump:** 400 units### Explanation of Variances- **Price Variance (U: Unfavorable):** This occurs when the actual price paid for materials exceeds the standard price.- **Quantity Variance (F: Favorable):** This indicates that fewer materials were used than the standard, resulting in a cost savings.- **Total Direct Material Variance:** The combined effect of price and quantity variances on the overall cost. Unfavorable variance denotes additional cost, while favorable indicates savings.### SummaryThis table serves as a tool to evaluate cost control and efficiency in the manufacturing process for different products. By analyzing these variances, companies can identify areas needing improvement to maximize profitability and resource utilization. **Educational Material on Direct Materials Information for Talley Corporation**Talley Corporation Procurement and Usage Analysis for Speed Bumps**Production Overview:**Last month, Talley Corporation purchased and used the same quantity of material in producing its speed bump product meant for traffic control. The task is to complete the given table based on provided details.**Table: Direct Materials Information for Medium Speed Bump**- **Standard Pounds per Unit:** 15- **Standard Price per Pound:** $1.00- **Actual Quantity Purchased and Used per Unit:** *(Information needed)*- **Actual Price Paid for Material per Pound:** $1.80- **Direct Materials Price Variance:** $1,120 Unfavorable (U)- **Direct Materials Quantity Variance:** $100 Favorable (F)- **Total Direct Material Variance:** *(Information needed)*- **Number of Units Produced:** 100**Notes:**- The "Standard Pounds per Unit" and "Standard Price per Pound" reflect the company's expected material usage and cost expectations.- Variances are categorized as "Unfavorable" (U) if actual costs exceed expected costs, and "Favorable" (F) if actual usage or costs are less than expected.- The table requires input for the "Actual Quantity Purchased and Used per Unit" and the "Total Direct Material Variance" to be fully complete. These will provide a comprehensive view of resource efficiency and cost management.- It is important to round your answers to two decimal places for precision.This exercise aims to enhance understanding of variance analysis in material procurement and usage, reflecting on cost management efficiency.

Name: **Direct Materials Information Analysis**This table represents the di
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Description: **Direct Materials Information Analysis**This table represents the direct materials information for two different products: Medium Speed Bumps and Large Speed Bumps. The table compares key metrics and variance calculations used in manufacturing anal

The technique of predicting costs incurred throughout the manufacturing process is known as standard costing. This is done since manufacturers are unable to estimate real costs in advance. This approach is used by manufacturers in order to predict future expenditures of a variety of factors, including labor, materials, production, and overhead.Particulars Medium speed bump Standard pounds per unit 15 Standard price per pound 1 Actual quantity purchased and used per unit 14 The actual price paid for material per pound 1.8 Direct materials price variance 1120 U Direct materials quantity variance 100 F Total direct material variance 1020 U Number of units produced 100Medium speed bump: Direct materials price variance = Actual quantity*(Actual price-Standard price) 1120 = Actual quantity*(1.8 -1) Actual quantity = 1120/0.8 = 1400 Actual quantity purchased and used per unit = 1400/100 = 14 Total direct material variance = Direct materials price variance-Direct materials quantity variance Total direct material variance = 1120 - 100 = 1020 U

Business

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Direct materials information Standard pounds per unit.... Standard price per pound..... Actual quantity purchased and used per unit Actual price paid for material per pound.... Direct materials price variance... Direct materials quantity variance... Total direct material variance.. Number of units produced.. ...... Medium speed bump $ ....$ Large speed bump 15 1.00 $ ? 1.80 $ $1,120 U 100 F ? 100 ? 1.80 16 2.10 $1,920 U ? $480 U 400

Direct materials information Standard pounds per unit.... Standard price per pound..... Actual quantity purchased and used per unit Actual price paid for material per pound.... Direct materials price variance... Direct materials quantity variance... Total direct material variance.. Number of units produced.. ...... Medium speed bump $ ....$ Large speed bump 15 1.00 $ ? 1.80 $ $1,120 U 100 F ? 100 ? 1.80 16 2.10 $1,920 U ? $480 U 400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Labor rate variance
11.19 AM.jpeg A Edit & Create v QUESTION 1 Sea Eagle is a kayak manufacturer. For July 2021, Sea Eagle had the following standard costs for manufacturing one kayak: Standards per kayak Direct materials 4 kilograms of material at $10 per kilogram Direct manufacturing labour 0.5 hour of labour at $18 per hour The following data were compiled through the accounting system regarding actual performance in July 2021: Actual output units produced 5,000 kayaks Kilograms of direct materials purchased 18,000 kilograms Direct materials purchase price per kilogram $11 Kilograms of direct materials used 16,000 kilograms $36,900 Direct manufacturing labour costs 1,800 hours Actual hours of labour used $20.50 Labour rate per hour Click Save and Submit to save and submit. Click Save All Answers to save all answers. 11:26 30°C Rain showers 8/18/2 to search
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Find material price variance
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Material Material Actual Standard Actual Standard Price Usage Total Supplier Price Price Quantity Quantity Var Var Variance Current $7.50 $7.50 25,000 24,240 $0 Alternative #1 $7.35 $7.50 25,500 24,240 $0 Alternative #2 $7.58 $7.50 24,400 24,240 $0 Standard Quantity is 2.02 components Quantity produced is 12,000 You are a plant manager and have been approached by your purchasing manager about swapping out one of your suppliers. The manager has identified a vendor who will supply a key component at a 2% discount to your current supplier. At the same time, the supervisor of the group approaches you to indicate that the current supplier is not consistently meeting tolerances. The supervisor suggests a second vendor who promises better quality. You decide to run three batches, each with a different component. Results are in the table above. Task 1 Calculate the Material Price Variance for each component. Task 2 Calculate the Material Usage Variance for each component. Task 3 Based on the…
A2
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