Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha and Beta. The company has the following direct materials data for its product. Standard costs for one unit of output Alpha Beta 28 units of input at $ 6.00 56 units of input at $14.50 The company had the following results in June. Units of output produced 3,600 units Materials purchased and used Alpha Beta 108,800 units at $ 5.50 193,600 units at $14.80 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Complete this question by entering your answers in the tabs below. Required A Required B Compute materials mix and yield variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Materials mix variance Materials yield variance Alpha < Required A Beta Required B > Total

Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha and Beta. The company has the following direct materials data for its product. Standard costs for one unit of output Alpha Beta 28 units of input at $ 6.00 56 units of input at $14.50 The company had the following results in June. Units of output produced 3,600 units Materials purchased and used Alpha Beta 108,800 units at $ 5.50 193,600 units at $14.80 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Complete this question by entering your answers in the tabs below. Required A Required B Compute materials mix and yield variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Materials mix variance Materials yield variance Alpha < Required A Beta Required B > Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials 224,000 lbs. at $5.50 221,800 lbs. at $5.40 Direct labor 17,500 hrs. at $16.60 17,900 hrs. at $17.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $2.90 $50,240 variable cost Fixed cost, $4.60 $83,996 fixed cost Each unit requires 0.25 hour of direct labor. Required: 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…
Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $148,500, while the cost of Inspection is $41,180. The products have the following activity demands: Product 5 Product Z 1,485 3,015 52 19 Total 4,500 71 What proportion of the Machining activity is used by Product 5? Machine hours Number of batches Multiple Choice O 67% 59% 33% 41%
Ridgecrest Company manufactures plastic storage crates and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) Direct materials Conversion cost Number of units started April costs Direct materials Conversion cost Work in process, April 30 (100% complete for materials, 20% for conversion) 32,100 units $ 48,900 $ 66,900 95,700 units $ 136,500 $ 202,500 48,900 units E3-10 (Algo) FIFO Method [LO 3-4] Required: Using the FIFO method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process. S
Ridgecrest Company manufactures plastic storage crates and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) 30,500 units Direct materials $ 47,300 Conversion cost $ 65,300 Number of units started 94,100 units April costs Direct materials $ 134,900 Conversion cost $ 200,900 Work in process, April 30 (100% complete for materials, 20% for conversion) 47,300 units Required:Using the FIFO method of process costing, complete each of the following steps:1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process.
a. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong b. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong C. Fixed Factory Overhead Volume Variance Standard for amount produced Normal Capacity at 100% Capacity not used Standard Fixed FOH cost rate Factory Overhead Volume Variance Wrong Variable Factory Overhead Controllable Variance Standard Variable FOH Cost for 3,000 hours Actual Variable FOH Cost Factory Overhead Controllable Variance Wrong Total Factory Overhead Cost Variance Wrong
Becton Labs Inc. produces various chemical compounds for industrial use. One compound, called Fludex, is prepared by means of an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labour Variable overhead During November, the following activity was recorded by the company relative to production of Fludex: a. Materials were purchased, 12,360 millilitres at a cost of $265,122. b. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,500 millilitres of material remained in the warehouse unused. 2.50 mL at 1.40 hours at 1.40 hours at c. The company employs 35 lab technicians to work on the production of Fludex. During November, each worked an average of 160 hours at an average rate of $16 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labour-hours. Variable manufacturing overhead costs during November totalled $42,680. e.…
Layla Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows: Work in process, October 1 (45% complete) 7,200 Units completed and transferred out 38,400 Work in Process, October 31 (85% complete) 3,600 Cost per Equivalent Unit of Production $12.13 Layla uses the weighted average method. Which of the following is Layla's cost of October's ending work in process for the mixing department? (Round answers to 2 decimal places). O $37,117.80 O $22,520.50 O $27,500.40 O $29,200.60
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis): Raw Material Standard Labor Time Product X442 Y661 Sintering Finishing Alpha6 3.0 kilos 2.0 liters 0.40 hours 1.00 hours Zeta7 5.0 kilos 5.0 liters 0.50 hours 1.20 hours Information relating to materials purchased and materials used in production during May follows: Purchase Standard Used in Material Purchases Cost Price Production 15,700 kilos 16,700 liters $51,810 $20,040 $3.10 per kilo $1.30 per liter 10,200 kilos 14,700 liters X442 Y661 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $21.50 per hour in Finishing. c. During May, 1,450 direct labor-hours were…
Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Actual Costs Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Standard Costs Direct materials 192,400 lbs. at $5.10 per lb. 190,500 lbs. at $5.00 per lb. Direct labor 18,500 hrs. at $16.90 per hr. 18,930 hrs. at $17.30 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.70 Fixed cost, $5.80 $67,770 variable cost $111,998 fixed cost Each unit requires 0.25 hour of direct labor. Required: 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…
Proctor Cleaning Products manufactures a product using a process that allows for substitution between two materials, X-1 and Y-7. The company has the following direct materials data for its product: Standard costs for one unit of output 68 units of input at $1.00 12 units of input at $4.60 The following results were reported for January: X-1 Y-7 Units of output produced Materials purchased X-1 Y-7 Proctor has a policy of holding no inventories of any kind. Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Required A Required B 18,200 units Complete this question by entering your answers in the tabs below. 1,204,000 units at $1.02 224,000 units at $4.551 Materials price variance Materials efficiency variance Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select…
Mohammed Company employs a standard cost system. Mohammed has established the following standards for one unit of product: Standard Quantity Standard Price Standard Cost Direct materials 12.0 pounds $ 7.00/pound $ 84.00 Direct labor 2.0 hours $15.00/hour 75.00 During June, Mohammed planned to produce 21,000 units of product. It purchased 330,000 pounds of direct material at a total cost of $2,343,000. The total factory wages for June were $1,440,000. Mohammed manufactured 20,000 units of product during June using 302,000 pounds of direct material and 41,000 direct labor hours. How much is the labor efficiency variance? $15,000 unfavorable $75,000 unfavorable $75,000 favorable $15,000 favorable $35,000 favorable
Petrillo Company produces engine parts for large motors and uses standard costing for its production costing and control. The company provided the following information for the month of November: Standards for direct materials per 7 lbs. at $6 per unit Ibs. Parts produced 2,000 units Direct materials purchased 12,000 lbs. at $5.8 per Beginning inventory of direct Ibs. materials 5,000 lbs. Ending inventory of direct materials 2,000 lbs. What is the direct material guantity (usage) variance? O $6,000 U O $30,000 F O $3,000 U O $12,000 F