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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.

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
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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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.
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