Answer?? General Accounting Stellar Manufacturing has a standard of 2.5 pounds of rawmaterial per unit, at $8 per pound. During June, theyproduced 1,500 units and used 3,900 pounds of materials at atotal cost of $31,200. Calculate Stellar's materials quantityvariance.a. $800 Ub. $1,200F c. $1,600U d. $400 F

Step 1: Define Materials Quantity Variance (MQV)The Materials Quantity Variance measures the…

Answered: Stellar Manufacturing has a standard of…

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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unit of Zoom are given below: Standard Quantity or Hours 4.6 pounds 0.2 hours Standard Price or Rate $ 2.50 per pound $18.00 per hour Standard Cost Direct materials $11.50 $ 3.60 Direct labor During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. b. All of the material purchased was used to produce 4,000 units of Zoom. c. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) X Answer is not complete. 1. Materials price variance Materials quantity variance F 2. Labor rate variance Labor efficiency variance F
Handerson Corporation makes a product with the following standard costs: Standard Quantity Standard Price or or Hours 8.5 kilos Rate Direct materials $46.00 r kilo $ 20.00 per hour $ 6.00 per hour Direct labor 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $ 195,920 $ 22,736 $ 7,540 Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is cor purchased. The labor efficiency variance for August is:
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General Accounting
Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 8.5 kilos $ 6.00 per kilo Direct labor 0.4 hours $ 20.00 per hour Variable overhead 0.4 hours $ 6.00 per hour The company reported the following results concerning this product in August. Actual output 3,200 units Raw materials used in production 29,030 kilos Purchases of raw materials 31,600 kilos Actual direct labor-hours 1,160 hours Actual cost of raw materials purchases $ 195,920 Actual direct labor cost $ 22,736 Actual variable overhead cost $ 7,540 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for August is: Multiple Choice $5,440 F $6,320 F $5,440 U $6,320 U
Q4. The following standards have been established for a raw material used to make the product: 4.5 pounds Standard quantity of the material per unit of output Standard price of the material The following data pertain to a recent month's operations: $13.90 per pound Actual material purchased Actual cost of material purchased Actual material used in production Actual output produced 2000 pounds $26200 1300 pounds 220 units 3.3 hours per unit $10.50 per hour 1100 hours Standard direct labor-hours Standard direct labor wage rate Actual direct labor-hours worked Actual direct labor wages paid $11385 a) What is the materials price variance for the month? b) What is the materials quantity variance for the month? c) What was the labor rate variance for the month? d) What was the labor efficiency variance for the month? e) Discuss the concept of 'Management by exception'.
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possible Standard material cost per kg of raw material is $8.75. Standard material allowed per unit is 6 Kg. Actual material used per unit is 6.25 Kg. Actual cost per kg is $8.00. What is the standard cost per output unit? O A. $48.00 B. $52.50 C. $50.00 D. $54.69 A: S Next
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (16 pounds @ $5 per pound) Direct labor (2 hours @ $14 per hour) $ 80 28 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (131,800 pounds @ $4.80 per pound) Direct labor (20,300 hours @ $14.10 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price AH Actual Hours SH Standard Hours $ 632,640 286,230 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
Sagar

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Stellar Manufacturing has a standard of 2.5 pounds of raw material per unit, at $8 per pound. During June, they produced 1,500 units and used 3,900 pounds of materials at a total cost of $31,200. Calculate Stellar's materials quantity variance. a. $800 U b. $1,200 F c. $1,600 U d. $400 F