Q4.The following standards have been established for a raw material used to make the product:4.5 poundsStandard quantity of the material per unit ofoutputStandard price of the materialThe following data pertain to a recent month's operations:$13.90 per poundActual material purchasedActual cost of material purchasedActual material used in productionActual output produced2000 pounds$262001300 pounds220 units3.3 hours per unit$10.50 per hour1100 hoursStandard direct labor-hoursStandard direct labor wage rateActual direct labor-hours workedActual direct labor wages paid$11385a) What is the materials price variance for the month?b) What is the materials quantity variance for the month?c) What was the labor rate variance for the month?d) What was the labor efficiency variance for the month?e) Discuss the concept of 'Management by exception'.

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: The following standards have been…

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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Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Oak Ridge Steel Company is $462,800. The conversion cost for the period in the Rolling Department is $286,700. The total equivalent units for direct materials and conversion are 2,600 tons and 4,700 tons, respectively. Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit: $fill in the blank 1 per ton Conversion cost per equivalent unit: $fill in the blank 2 per ton
In the manufacture of 9,300 units of a product, direct materials cost incurred was $173,200, direct labor cost incurred was $114,700, and applied factory overhead was $48,800. What is the total conversion cost? A. $173,200 B.$163,500 C.$336,700 D. $48,800
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At the beginning of the year, Macquarie, Inc. set the following standards: Direct materials: 2.5 lbs./unit at a cost of $3/1b. Direct labor: 3 hrs./unit at a cost of $15/hr. At the end of the year, the following information is available: Direct materials purchased: Direct materials used: 50,000 lbs. at a cost of $175,000 48,000 Ibs. $360,000 25,000 units Direct labor cost: Production: 1) Compute the materials price variance: S. 2) Compute the materials usage variance: $ 3) If the labor rate variance is $40,000 favorable, compute the actual number of direct labor hours worked:
Yamishi Production had the following inventories for the first quarter of 2022: MaterialsWork in process Finished goods Beginning $606,600 312,100 416,100 Ending $522,100 280,800 540,200 Purchases of materials during the quarter were $427,800. Total direct labor costs were incurred in the amount of $1,482,000. Actual overhead costs were incurred as follows: operating supplies used, $17,100; janitorial and maintenance, $87,300; employee benefits, $26,400; utilities, $162,000; depreciation of factory, $43,200; property taxes, $24,000; factory insurance, $29,000. Net sales for the quarter were $3,562,200. Selling and administrative expenses were $508,000. Income taxes should be computed at 40 percent. Calculate cost of goods manufactured. 6. Company produces small boats. Each boat uses 2 sheets of direct materials at $3 a sheet, it takes 2 hours to finish one boat and hourly rate is $5, factory utilities and supervision cost $6 per boat and variable cost amounts to $2 per direct labor…

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