Give me solution with calculation step by step Summit Corporation recently purchased 95,000 units of raw material for $520,000. Fourunits of raw materials are budgeted for use in each finished good manufactured, with theraw material standard set at $22.00 for each completed product. Summit Corporationmanufactured 23,000 finished goods during the period.Required:1. Compute the total standard quantity of raw material allowed for the actual production.2. Determine the raw material price variance.3. Determine the raw material usage variance.

Step 1: Definition of Standard Quantity, Price Variance, and Usage VarianceStandard Quantity Allowed…

Answered: Summit Corporation recently purchased…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3CMA

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USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
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Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual Production (units) 592,000 Actual variable overhead $928,000 Actual direct labor hours 446,000 Actual fixed overhead $935,600 Required: Compute the applied fixed overhead. Compute the fixed overhead spending and volume variances. Compute the applied variable overhead. Compute the variable overhead spending and efficiency variances.
Frisco Company recently purchased 110,000 units of raw material for $594,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $18.00 for each completed product. Frisco manufactured 33,305 finished units during the period just ended and used 101,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be? Shailene Company has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000 direct labor hours were used, and 1,500 units of output were manufactured at a total cost of $72,000. Required: a. Determine the labor rate variance. b. Determine the labor efficiency variance.
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Frisco Company recently purchased 164,000 units of raw material for $642,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $23.00 for each completed product. Frisco manufactured 42,305 finished units during the period just ended and used 153,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?
a product cell for wallace company has budgeted conversion costs of $420,000 for the year. the cell is planned to be available 2,100 hours for production. each unit requires $12.50 of materials cost. the cell started and completed 700 units. the cell process time for the product is 15 minutes per unit. what is the cost(s) to be debited to finished goods for the period?
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Walman Company has budgeted to produce 44,000 units of Product Y for March 20Y9. To make one unit of finished product Y, three pounds of raw material are required. Actual beginning and desired ending inventories of raw material are as follows: 3/1/20Y9 – 100,000 pounds (Beginning) 3/31/20Y9 – 110,000 pounds (Desired Ending) How many pounds of raw material is Walman planning to purchase? Please prepare a purchases budget for the raw material.

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