### Materials Standards and Variance Analysis#### Established Materials Standards for a Product:- **Standard quantity per unit of output:** 4.3 meters- **Standard price:** $18.60 per meter#### Operational Data for the Last Month:- **Actual materials purchased:** 7,100 meters- **Actual cost of materials purchased:** $138,805- **Actual materials used in production:** 6,600 meters- **Actual output:** 1,500 units#### Task:Calculate the materials price variance for the month.#### Multiple Choice Options:- $2,933 U- $6,745 U- $7,600 U- $12,345 U#### Explanation:The price variance is determined by comparing the actual cost of materials purchased with the expected cost based on the standard price.U (Unfavorable) indicates the actual costs were higher than expected.

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Description: ### Materials Standards and Variance Analysis#### Established Materials Standards for a Product:- **Standard quantity per unit of output:** 4.3 meters- **Standard price:** $18.60 per meter#### Operational Data for the Last Month:- **Actual materials

Material price variance = (Actual price per meter - Standard price per meter)*Actual quantity…

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The following materials standards have been established for a particular product: Standard quantity per unit of output 4.3 meters $18.60 per meter Standard price The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials 7,100 meters $138,805 purchased Actual materials used in 6,600 meters production Actual output 1,500 units What is the materials price variance for the month? Multiple Choice $2,933 U • $6,745 U $7,600 U $12,345 U

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.3 meters $18.60 per meter Standard price The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials 7,100 meters $138,805 purchased Actual materials used in 6,600 meters production Actual output 1,500 units What is the materials price variance for the month? Multiple Choice $2,933 U • $6,745 U $7,600 U $12,345 U

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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Subm The standards for product V28 call for 8.0 pounds of a raw material that costs $18.80 per pound. Last month, 1,900 pounds of the raw material were purchased for $35,340. The actual output of the month was 210 units of product V28. A total of 1,800 pounds of the raw material were used to produce this output. The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. a. Materials price variance b. Materials quantity variance
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Question 3: Calculate the variance for the given data: The standard mix to produce one unit of product is as follows: Material A 60 units @ $ 10 per unit Material B 80 units @ $ 15 per unit Material C 100 units @ $ 20 per unit During the month of July, 10 units were actually produced and consumption was as follows: Material A 640 units @ $ 7.50 per unit Material B 950 units @ $ 18.00 per unit Material C 870 units @ $ 22.50 per unit b)Standard wage rate is Rs.3 per hour and standard time is 10 hours. But actual wage rate is Rs. 3.5per hour and actual hours used are 12 hours. Calculate Labor cost variance.
Information concerning Johnston Company's direct materials costs is as follows: Standard price per pound $ 8.05 Actual quantity purchased 3,450 pounds Actual quantity used in production 3,350 pounds Units of product manufactured 860 Materials purchase-price variance–favorable $ 1,015 Budget data for the period: Units to manufacture 1,160 Units of direct materials 4,640 pounds The actual purchase price per pound of direct materials was: $7.72. $8.34. $8.72. $8.09. $7.76.
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Chulak Company uses a standard costing system. The following data are available for the month: Actual quantity of direct materials purchased 25,000 pounds Standard price of direct materials $2 per pound Material price variance $2,500 unfavorable The actual price per pound of direct materials purchased during the month is
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Question # 1 Standard and the actual costs for direct materials and direct labor are given as under: Standard costs Direct materials 8,000 units at total direct material costs Rs. 40,000 Direct labor: 7,000 hours at Rs. 6 per hour Actual costs Direct materials 8,500 units at Rs. 4.5 per unit Direct labor: 6,500 hours at Rs. 6.25 per hour Required a. Material Price Variance and Material Quantity Variance b. Labor Rate Variance and Labor Efficiency Variance
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