roduce a single unit of output.= șo. 70 per pound -$8.00 per hour$4.90 per hour =5.60$ 3.20$ 1.96ed 77,000 pounds of direct materials at a price of $0.90 per pound to produce 10,000 units of output. Direct labor costs for theworked. Variable manufacturing overhead costs incurred totaled $15,600 and fixed manufacturing overhead Incurred wasce variance for the month was: < PrevA company uses the following standard costs to produce a single unit of output.Direct materialsDirectManufacturingpounds at $0.70 per pound-0.4 hour at $8.00 per hourlabor$ 5.60$ 3.20$ 1.96overhead530.4hourat $4.90per hour -During the latest month, the company purchased and used 77,000 pounds of direct materials ata price of $0.90 per pound to produce 10,000 units of output Direct lemonth totaled $29,100 based on 3,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15 600 and fixed manufacturing overhee$10,000. Based on this information, the direct materials price variace for the month was:Multiple Choice$2,000 favorable$15,400 unfavorable$5,600 unfavorable$6,400 unfavorableNe$5,600 favorable23 of 25

Name: roduce a single unit of output.= șo. 70 per pound -$8.00 per hour$4.9
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Description: roduce a single unit of output.= șo. 70 per pound -$8.00 per hour$4.90 per hour =5.60$ 3.20$ 1.96ed 77,000 pounds of direct materials at a price of $0.90 per pound to produce 10,000 units of output. Direct labor costs for theworked. Variable manufac

Solution: Standard price of materials = $0.70 per pound Actual price of materials = $0.90 pound…

Business

Accounting

uses the following standard costs to produce a single unit of output Direct materials 8 pounds at $0.70 per pound - $5.60 Direct labor 0.4 hour at $8.00 per hour - at $4.9O $ 3.20 $ 1.96 Manufacturing overhead 0.4 hour per hour - During the latest month, the company purchased and used 77,0O00 pounds of direct materials at a price of $0.90 per pound to produce 10,000 units of output C month totaled $29,100 based on 3,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15 SO0 and fixed manufacturing s $10,000. Based on this information, the direct materials price variance for the month was: Multiple Choice $2.000 favorable

uses the following standard costs to produce a single unit of output Direct materials 8 pounds at $0.70 per pound - $5.60 Direct labor 0.4 hour at $8.00 per hour - at $4.9O $ 3.20 $ 1.96 Manufacturing overhead 0.4 hour per hour - During the latest month, the company purchased and used 77,0O00 pounds of direct materials at a price of $0.90 per pound to produce 10,000 units of output C month totaled $29,100 based on 3,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15 SO0 and fixed manufacturing s $10,000. Based on this information, the direct materials price variance for the month was: Multiple Choice $2.000 favorable

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

roduce a single unit of output.
= șo. 70 per pound -
$8.00 per hour
$4.90 per hour =
5.60
$ 3.20
$ 1.96
ed 77,000 pounds of direct materials at a price of $0.90 per pound to produce 10,000 units of output. Direct labor costs for the
worked. Variable manufacturing overhead costs incurred totaled $15,600 and fixed manufacturing overhead Incurred was
ce variance for the month was:

< Prev
A company uses the following standard costs to produce a single unit of output.
Direct materials
Direct
Manufacturing
pounds at $0.70 per pound-
0.4 hour at $8.00 per hour
labor
$ 5.60
$ 3.20
$ 1.96
overhead
53
0.4
hour
at $4.90
per hour -
During the latest month, the company purchased and used 77,000 pounds of direct materials ata price of $0.90 per pound to produce 10,000 units of output Direct le
month totaled $29,100 based on 3,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15 600 and fixed manufacturing overhee
$10,000. Based on this information, the direct materials price variace for the month was:
Multiple Choice
$2,000 favorable
$15,400 unfavorable
$5,600 unfavorable
$6,400 unfavorable
Ne
$5,600 favorable
23 of 25

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Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours 4.6 pounds 0.2 hours Rate $ 2.50 per pound $18.00 per hour During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. b. The company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Standard Price or Materials price variance Materials quantity variance Required: Compute the materials price and quantity variances for the month. (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.) Answer is complete but…
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