The Big Blackbird Company manufactures decorative scarecrows that have a standard cost of $3.50 per pound for direct materials used in the manufacturing process. During September, 30,000 pounds of materials were purchased for $4.00 per pound, and 24,000 pounds were actually used in making 5,000 scarecrows. There were no beginning inventories. the Determine the materials price variance assuming that materials costs are responsibility of the materials purchasing manager. b. Determine the materials price variance assuming that materials costs are the responsibility of the production manager. c. Determine the material quantity variance if the standard materials for each scarecrow are 6 pounds.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Need help with this question

The Big Blackbird Company manufactures
decorative scarecrows that have a standard cost
of $3.50 per pound for direct materials used in
the manufacturing process. During September,
30,000 pounds of materials were purchased for
$4.00 per pound, and 24,000 pounds were
actually used in making 5,000 scarecrows. There
were no beginning inventories.
the
Determine the materials price variance
assuming that materials costs are
responsibility of the materials purchasing
manager.
b. Determine the materials price variance
assuming that materials costs are the
responsibility of the production manager.
c. Determine the material quantity variance if the
standard materials for each scarecrow are 6
pounds.
Transcribed Image Text:The Big Blackbird Company manufactures decorative scarecrows that have a standard cost of $3.50 per pound for direct materials used in the manufacturing process. During September, 30,000 pounds of materials were purchased for $4.00 per pound, and 24,000 pounds were actually used in making 5,000 scarecrows. There were no beginning inventories. the Determine the materials price variance assuming that materials costs are responsibility of the materials purchasing manager. b. Determine the materials price variance assuming that materials costs are the responsibility of the production manager. c. Determine the material quantity variance if the standard materials for each scarecrow are 6 pounds.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education