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standard cost per pound. Calculate the material quantity variance and the engineering change order (ECO) material variance. Note: Do not use a negative sign with your answer. Material quantity variance $ ECO material variance $ ( ◆

standard cost per pound. Calculate the material quantity variance and the engineering change order (ECO) material variance. Note: Do not use a negative sign with your answer. Material quantity variance $ ECO material variance $ ( ◆

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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JIT variances Oklahoma Pneumatic uses a JIT system. The following standards are related to materials A and B, which are used to make one unit of the company's final product: Annual Material Standards 3 pounds of Material A x $2.50 4 pounds of Material Bx $3.40 Current Material Standards 2 pounds of Material A × $2.50 5 pounds of Material B × $3.40 $7.50 13.60 $21.10 $5.00 17.00 $22.00 Current material standards differ from the original because of an engineering change made near the end of June. During July, the company produced 3,000 units of its final product and used 11,000 pounds of Material A and 10,000 pounds of Material B. All material is acquired at the standard cost per pound. ECO material variance $ Calculate the material quantity variance and the engineering change order (ECO) material variance. Note: Do not use a negative sign with your answer. Material quantity variance $ 4
Transcribed Image Text:JIT variances Oklahoma Pneumatic uses a JIT system. The following standards are related to materials A and B, which are used to make one unit of the company's final product: Annual Material Standards 3 pounds of Material A x $2.50 4 pounds of Material Bx $3.40 Current Material Standards 2 pounds of Material A × $2.50 5 pounds of Material B × $3.40 $7.50 13.60 $21.10 $5.00 17.00 $22.00 Current material standards differ from the original because of an engineering change made near the end of June. During July, the company produced 3,000 units of its final product and used 11,000 pounds of Material A and 10,000 pounds of Material B. All material is acquired at the standard cost per pound. ECO material variance $ Calculate the material quantity variance and the engineering change order (ECO) material variance. Note: Do not use a negative sign with your answer. Material quantity variance $ 4
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