The Carter Manufacturing Company has a standard costing system. The following data are available for November: ⚫ Actual quantity of direct materials purchased: 40,000 pounds ⚫ Standard price of direct materials: $6 per pound ⚫ Material price variance: $4,800 unfavourable ⚫ Material quantity variance: $3,200 favourable What is the actual price per pound of direct materials purchased in November? a. $5.88 b. $6.12 c. $6.08 d. $5.96

The Carter Manufacturing Company has a standard costing system. The following data are available for November: ⚫ Actual quantity of direct materials purchased: 40,000 pounds ⚫ Standard price of direct materials: $6 per pound ⚫ Material price variance: $4,800 unfavourable ⚫ Material quantity variance: $3,200 favourable What is the actual price per pound of direct materials purchased in November? a. $5.88 b. $6.12 c. $6.08 d. $5.96

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
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Use the following information to answer questions 15 and 16. A company has the following information in its standard cost card: £ = 7.00 Material 2.5kg at the price of £3/kg During the month the company recorded the following: Units produced Material used Material cost 2,500 units 7,850kg £23,180 %3D 15. Calculate the material price variance. 16. Calculate the material usage variance.
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Myers Corporation has the following data related to direct materials costs for November: actual cost for 4,680 pounds of material at $5.00 and standard cost for 4,460 pounds of material at $6.20 per pound. The direct materials price variance is Oa. $1,364 unfavorable Ob. $1,364 favorable Oc. $5,616 unfavorable Od. $5,616 favorable
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Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 per pound; and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials price variance? a.$2,880 unfavorable b.$3,000 unfavorable c.$2,880 favorable d.$3,000 favorable
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A company has the following information in its standard cost card: £ Material 2.5kg at the price of £3/kg = 7.00 During the month the company recorded the following: Units produced = 2,500 units Material used = 7,850kg Material cost = £23,180 Calculate the material price variance. 2. Calculate the material usage variance. 3. Explain what is meant by the breakeven point, and its usefulness to a business.