Answer this cost accounting question Summerlin Company budgeted 4,100pounds of material costing $7.60 perpound to produce 2,000 units. Thecompany actually used 5,350 poundswhich cost $8.25 per pound to produce2,000 units.What are the direct materials pricevariance?

Explanation of Direct Materials Price Variance:Direct materials price variance measures the…

Answered: Summerlin Company budgeted 4,100 pounds…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of $2.50 per unit, and manufacturing overhead of $1.25 per unit. Fixed costs are $49,000. What would be the budgeted amounts for 33,000 and 35,000 units?
For the current year, Power Cords Corp. expected to sell 42,000 industrial power cords. Fixed costs were expected to total $1,650,000; unit sales price was expected to be $3,750; and unit variable costs were budgeted at $2,250.Power Cords Corp.'s margin of safety (MOS) in units is:
Assume the following: The actual price per pound is $2.25. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The materials price variance is $12,500 U. The materials quantity variance is $4,000 F. What is the total number of units produced (finished goods) during the period?
For the current year, Power Cords Corp. expected to sell 40,700 industrial power cords. Fixed costs were expected to total $1,643,500; unit sales price was expected to be $3,650; and unit variable costs were budgeted at $2,100. Power Cord Corp.'s margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.
For the current year, Electric Corporation expected to sell 42,500 industrial power cords. Fixed costs were expected to total $1,652,500; unit sales price was expected to be $4,000; and unit variable costs were budgeted at $2,500. Electric Corporation's margin of safety (MOS) in units is: Multiple Choice 32,998. 36,598. 39,498. 49,298. 41,398.
A product has budgeted production of 1,000 units and a material cost of £14,000; the standard cost card allows for £7 per kg. In the period, 2,500 kg were purchased at a cost of £18,750 and used to produce 1,250 units. What were the material price and usage variances?
Troopers Company had budgeted 50,000 units of output using 50,000 units of raw materials at a totla material cost of P100,000. Actual output was 50,000 units of product requiring 45,000 units of raw materials at a cost of P2.10 per unit. What is the direct materials price variance? Indicate if favorable or unfavorable. What is the direct materials usage variance? Indicate if favorable or unfavorable.
The following information is provided for Dexter, Inc.: Standard direct labor wage rate: $10/hour Standard direct labor hours per unit of output: 5 hours/unit Budgeted Production: 5,000 units Actual direct labor hours per unit of output: 5 hours/unit Actual direct labor wage rate: $11.50/hour Actual Production: 4,900 units What is the direct labor rate variance?
The following information is provided for Dexter, Inc.: Standard direct labor wage rate: $10/hour Standard direct labor hours per unit of output: 5 hours/unit Budgeted Production: 5,000 units Actual direct labor hours per unit of output: 5 hours/unit Actual direct labor wage rate: $11.50/hour Actual Production: 4,900 units What is the direct labor efficiency variance?

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Summerlin Company budgeted 4,100 pounds of material costing $7.60 per pound to produce 2,000 units. The company actually used 5,350 pounds which cost $8.25 per pound to produce 2,000 units. What are the direct materials price variance?