The following materials standards have been established for a particular product: Standard quantity per unit of output Standard price 4.9 pounds $13.70 per pou The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production 5,550 pounds $63,380 5,050 pounds Actual output 750 units The direct materials purchases variance is computed when the materials are purchased.

The following materials standards have been established for a particular product: Standard quantity per unit of output Standard price 4.9 pounds $13.70 per pou The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production 5,550 pounds $63,380 5,050 pounds Actual output 750 units The direct materials purchases variance is computed when the materials are purchased.

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Description: The following materials standards have been established for a particular product:Standard quantity per unit of outputStandard price4.9 pounds$13.70 per poundThe following data pertain to operations concerning the product for the last month:Actual ma

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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Upon your review of Shalom Company's standard cost card. You found the following information: Standards: Material Labor Actual: Production Material Labor 5.0 feet per unit @ P4.00 per foot 3.0 hours per unit @ 35.00 per hour 2,800 units produced during the month 14,500 feet used; 15,100 feet purchased @ P3.70 per foot 8,150 direct labor hours @ P36.00 per hour Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the labor efficiency variance?
The standard costs and actual costs for direct materials for the manufacture of 2,430 actual units of product are as follows: Standard Costs Direct materials 2,430 kilograms @$8.50 Actual Costs Direct materials 2,500 kilograms @ $8.35 The direct materials quantity variance is
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 8,800 lb. at $5.60 8,700 lb. at $5.50 Direct labor 1,700 hrs. at $18.50 1,740 hrs. at $18.70 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,770 direct labor hrs.: Variable cost, $4.10 $6,900 variable cost Fixed cost, $6.50 $11,505 fixed cost Each unit requires 0.25 hour of direct labor.
A manufactured product has the following information for June. Standard Quantity and Coat 7 pounds 3 DLH 58 per pound 3 DLH Direct materials Direct labor Overhead Unita manufactured AH Actual Hours SH Standard Hours AR Actual Rate. SR Standard Rate $16 per DLH $11 per DL Actual Cost Actual Resulta 50,900 pounds 21,200 hours $ 243,000 7,200 unita Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour answers to 2 decimal places.) $8.20 per pound $16.60 per hour Standard Cost
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 units of product were as follows: Standard Costs Actual Costs Direct materials 6,800 lb. at $5.90 6,700 lb. at $5.70 Direct labor 1,300 hrs. at $17.80 1,330 hrs. at $18.20 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,360 direct labor hrs.: Variable cost, $4.10 $5,280 variable cost Fixed cost, $6.50 $8,840 fixed cost Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials price…
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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.
Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.5 ounces 0.2 hours 0.2 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The labor rate variance for June is: Standard Price or Rate $ 2.00 per ounce $23.00 per hour $ 6.00 per hour 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 40,660 $ 12,050 $ 3,100 Standard Cost Per Unit $ 13.00 $ 4.60 $ 1.20 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The following direct materials and direct labor data pertain to the operations of Ivanhoe Company for the month of August. Actual labor rate Actual materials price Standard labor rate Costs Standard materials price Actual hours incurred and used (a) Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used $15 $180 $14.50 $182 Quantities Total materials variance Materials price variance Total labor variance Materials quantity variance $ Compute the total, price, and quantity variances for materials and labor. $ LA $ per hour per ton per hour per ton $ LA ↑ 4,700 hours 1,900 tons 4,760 hours 1,890 tons M < <
Assume the following information (the quantity of materials purchased = the quantity used): Actual total cost of direct materials $ 65,560 Direct materials price variance $ 5,960 U Standard quantity of materials allowed per unit 3 pounds Standard price per pound of material $ 4.00 Standard rate per direct labor hour $ 5.00 Actual total direct labor hours 6,500 Direct labor efficiency variance $ 3,500 F Standard number of direct labor hours allowed per unit 2 hours Direct labor spending variance $ 400 U What is the actual number of units produced during the period?
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