[The following information applies to the questions displayed below.] DES Company manufactures folding chairs. Direct materials include hard plastic for the seat and back and metal beams for the legs. The standard cost sheet for a single chair includes the following direct materials information: Material Hard plastic Metal beams Quantity 2 sheets 4 beans Cost per Unit $2.87 per sheet $1.29 per beam Total Cost $ 5.74 5.16 $10.90 Last month, DES purchased 30,100 sheets of hard plastic at a cost of $77,959. The company also purchased 60,700 metal beams at a cost of $85,587. DES produced 15,200 chairs. There was no beginning or ending inventory of plastic sheets or metal beams during the month. Required: 1. Compute the following for last month's operations at DES Company: a. The price variance for hard plastic. Indicate whether the variance is favorable or unfavorable. b. The price variance for metal beams. Indicate whether the variance is favorable or unfavorable. a. Price variance for hard plastic b. Price variance for metal beams c. Total direct materials price variance d. Plastic usage variance Metal usage variance Total materials usage variance c. The total direct materials price variance. Indicate whether the variance is favorable or unfavorable. d. The usage variances for hard plastic and metal beams, and the total direct materials usage variance. Indicate whether each variance is favorable or unfavorable. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
[The following information applies to the questions displayed below.] DES Company manufactures folding chairs. Direct materials include hard plastic for the seat and back and metal beams for the legs. The standard cost sheet for a single chair includes the following direct materials information: Material Hard plastic Metal beams Quantity 2 sheets 4 beans Cost per Unit $2.87 per sheet $1.29 per beam Total Cost $ 5.74 5.16 $10.90 Last month, DES purchased 30,100 sheets of hard plastic at a cost of $77,959. The company also purchased 60,700 metal beams at a cost of $85,587. DES produced 15,200 chairs. There was no beginning or ending inventory of plastic sheets or metal beams during the month. Required: 1. Compute the following for last month's operations at DES Company: a. The price variance for hard plastic. Indicate whether the variance is favorable or unfavorable. b. The price variance for metal beams. Indicate whether the variance is favorable or unfavorable. a. Price variance for hard plastic b. Price variance for metal beams c. Total direct materials price variance d. Plastic usage variance Metal usage variance Total materials usage variance c. The total direct materials price variance. Indicate whether the variance is favorable or unfavorable. d. The usage variances for hard plastic and metal beams, and the total direct materials usage variance. Indicate whether each variance is favorable or unfavorable. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hh.113.
![[The following information applies to the questions displayed below.]
DES Company manufactures folding chairs. Direct materials include hard plastic for the seat and back and metal beams
for the legs. The standard cost sheet for a single chair includes the following direct materials information:
Material
Hard plastic
Metal beams
Quantity
2 sheets
4 beans
Cost per Unit
$2.87 per sheet
$1.29 per beam
Last month, DES purchased 30,100 sheets of hard plastic at a cost of $77,959. The company also purchased 60,700 metal
beams at a cost of $85,587. DES produced 15,200 chairs. There was no beginning or ending inventory of plastic sheets or
metal beams during the month.
a. Price variance for hard plastic
b. Price variance for metal beams
c.
d. Plastic usage variance
Metal usage variance
Total materials usage variance
Total Cost
$ 5.74
5.16
$10.90
Required:
1. Compute the following for last month's operations at DES Company:
a. The price variance for hard plastic. Indicate whether the variance is favorable or unfavorable.
b. The price variance for metal beams. Indicate whether the variance is favorable or unfavorable.
c. The total direct materials price variance. Indicate whether the variance is favorable or unfavorable.
d. The usage variances for hard plastic and metal beams, and the total direct materials usage variance. Indicate whether each variance
is favorable or unfavorable.
(Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Total direct materials price variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F146ba547-3393-4257-a101-1e7cee66946f%2F7e5f4c32-ccad-4e7e-8404-5b513f1d4227%2Fzqnzj2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
DES Company manufactures folding chairs. Direct materials include hard plastic for the seat and back and metal beams
for the legs. The standard cost sheet for a single chair includes the following direct materials information:
Material
Hard plastic
Metal beams
Quantity
2 sheets
4 beans
Cost per Unit
$2.87 per sheet
$1.29 per beam
Last month, DES purchased 30,100 sheets of hard plastic at a cost of $77,959. The company also purchased 60,700 metal
beams at a cost of $85,587. DES produced 15,200 chairs. There was no beginning or ending inventory of plastic sheets or
metal beams during the month.
a. Price variance for hard plastic
b. Price variance for metal beams
c.
d. Plastic usage variance
Metal usage variance
Total materials usage variance
Total Cost
$ 5.74
5.16
$10.90
Required:
1. Compute the following for last month's operations at DES Company:
a. The price variance for hard plastic. Indicate whether the variance is favorable or unfavorable.
b. The price variance for metal beams. Indicate whether the variance is favorable or unfavorable.
c. The total direct materials price variance. Indicate whether the variance is favorable or unfavorable.
d. The usage variances for hard plastic and metal beams, and the total direct materials usage variance. Indicate whether each variance
is favorable or unfavorable.
(Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Total direct materials price variance
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