The following data for DEF Company pertain to the production of 450 units of product X during June. Selected items are omitted because the costing records were lost in a computer breakdown. Direct Materials (All materials purchased were used.) Standard cost per unit: a grams at $4.00 per gram. Total actual cost: b grams costing $9,600. Standard cost allowed for units produced was S9,000. Materials price variance: c. Materials efficiency variance was $80 unfavorable. Direct Manufacturing Labor Standard cost is 3 hours per unit at $8.00 per hour. Actual cost per hour was $8.25. Total actual cost: d . Labor price variance: e Labor efficiency variance was $400 unfavorable. Requlred: a. Compute the missing elements in the report represented by the lettered items. b. How might a manager gain insight into the causes of a flexible-budget variance for direct materials, direct labor? What can be the potential reasons? What kind of corrective actions can be taken by the management? C. How does variance analysis help in continuous improvement?

The following data for DEF Company pertain to the production of 450 units of product X during June. Selected items are omitted because the costing records were lost in a computer breakdown. Direct Materials (All materials purchased were used.) Standard cost per unit: a grams at $4.00 per gram. Total actual cost: b grams costing $9,600. Standard cost allowed for units produced was S9,000. Materials price variance: c. Materials efficiency variance was $80 unfavorable. Direct Manufacturing Labor Standard cost is 3 hours per unit at $8.00 per hour. Actual cost per hour was $8.25. Total actual cost: d . Labor price variance: e Labor efficiency variance was $400 unfavorable. Requlred: a. Compute the missing elements in the report represented by the lettered items. b. How might a manager gain insight into the causes of a flexible-budget variance for direct materials, direct labor? What can be the potential reasons? What kind of corrective actions can be taken by the management? C. How does variance analysis help in continuous improvement?

Name: The following data for DEF Company pertain to the production of 450 u
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: The following data for DEF Company pertain to the production of 450 units of product X during June.Selected items are omitted because the costing records were lost in a computer breakdown.Direct Materials (All materials purchased were used.)Standard

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Prepare an income statement for the year ended December 31, through the gross profit for Baxter Company using the following information: Baxter Company sold 8,800 units at $135 per unit. Normal production is 9,200 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.) Enter favorable variances as negative numbers. Standard: 5 yards per unit at $6.30 per yard Actual yards used: 44,500 yards at $6.25 per yard Standard: 2.25 hours per unit at $16.00 Actual hours worked: 19,550 at $15.90 per hour Standard: variable overhead $1.05 per unit Standard: fixed overhead $202,400 (budgeted and actual amount) Actual total factory overhead: $237,500
The Litton Company has established standards as follows: Direct material Direct Labor Variable manufacturing overhead Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Variable manufacturing overhead cost incurred Units produced Direct materials used Direct materials purchased (3,000 pounds) 11,400 Direct Labor cost (1,100 hours) 9,240 5,720 The labor rate variance is: OOO The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours. 480f O 3 pounds per unit @ 4 per pound= 12 per unit 480u O 440f 2 hours per unit @ 8 per hour= 16 per unit 2 hours per unit @ 5 per hour= 10 per unit 440u 600 units 2,000 pounds
Solve this Problem
Please Do not Give image format and show all Calculation
The standard cost of Product B manufactured by Pharoah Company includes 2.6 units of direct materials at $5.30 per unit. During June, 27,400 units of direct materials are purchased at a cost of $5.05 per unit, and 27,400 units of direct materials are used to produce 10,400 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $ Materials price variance $ Materials quantity variance $ (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.40 and the quantity purchased and used is 26,900 units. Total materials variance $ Materials price variance $ Materials quantity variance $
Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,660 pounds of material at $5.00 and standard costs for 4,490 pounds of material at $6.10 per pound. The direct materials quantity variance is a.$5,126 favorable b.$1,037 favorable c.$5,126 unfavorable d.$1,037 unfavorable
Elm Industries uses a standard cost accounting system. During the month of May, Elm's actual total direct labor costs are $51,450. The direct labor rate variance is $1,800 unfavorable, and the direct labor efficiency variance is $750 favorable. What is the total amount of direct labor costs that Elm applies to its work in process inventory for the month of May? O $50,400 O $51,450 O $52,500 $53,250 O None of the above
orsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $154 per unit. Its standard cost per unit produced is $124 and its selling and administrative expenses totaled $244,500. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance $ 8,400 F Materials quantity variance $ 12,100 U Labor rate variance $ 5,400 U Labor efficiency variance $ 6,300 F Fixed overhead budget variance $ 4,400 F Fixed overhead volume variance $ 13,900 F 1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year.
The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 3,900 Ibs. Actual unit price of direct materials $4.30 per Ib. Units of finished product manufactured 935 units Standard direct materials per unit of finished product 4 Ibs. Direct materials quantity variance-unfavorable $704 Direct materials price variance-favorable $390 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials per unit
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $151 per unit. Its standard cost per unit produced is $121 and its selling and administrative expenses totaled $243,000. Forsyth does not have any variable manufacturing overhead costs and It recorded the following variances during the year: Haterials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed overhead budget variance Fixed overhead volume variance $ 8,100 F $11,800 U $ 5,100 U $ 6,000 F $ 4,100 F $13,600 F Required: 1. When Forsyth closes its standard cost varlances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 When Forsyth closes its standard cost variances, the cost of goods…
Ex. 6-1. Materials Cost Variances. Carmen Company produces and selle product with the following material standards: Quantity - 5 liters of raw materials per unit Price P7.00 per liter Actual data on production and material costs for the previous month were gathered as follows: Production - 3,000 units of product Quantity of materials purchased - 20,000 liters Quantity of materials used 14,000 liters Price paid for materials purchased - P7.10 per liter Required: a. Determine the total materials cost variance. b. Compute the price and quantity variances. c. Determine the purchase price variance.
Compute direct materials variances. BE11.4 (LO 2), AP Simba Company's standard materials cost per unit of output is $10 (2 pounds x $5). During July, the company purchases and uses 3,200 pounds of materials costing $16,192 in making 1,500 units of finished product. Compute the total, price, and quantity materials variances. Compute direct labor variances. utput is $20 (3 hours Su nor hour). During August the