Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Item Metal Plastic Rubber Item Labor Materials (a) Per unit 1 lb. 12 oz. (b) 4 oz. Direct labor Per unit 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $3.62 Save for Later The January figures for purchasing, production, and labor are: The company purchased 218,100 pounds of raw materials in January at a cost of 79¢ a pound. Production used 218,100 pounds of raw materials to make 110,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $30,265 variable and $74,000 fixed. Cost Answer the following questions about standard costs. Materials price variance $ 63¢ per lb. $1.00 per lb. 88¢ per lb. Cost Your Answer Correct Answer (Used) What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, e.g. 125.) Materials quantity variance $ 2,181 What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Favorable Attempts: 0 of 2 used Submit Answer
Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Item Metal Plastic Rubber Item Labor Materials (a) Per unit 1 lb. 12 oz. (b) 4 oz. Direct labor Per unit 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $3.62 Save for Later The January figures for purchasing, production, and labor are: The company purchased 218,100 pounds of raw materials in January at a cost of 79¢ a pound. Production used 218,100 pounds of raw materials to make 110,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $30,265 variable and $74,000 fixed. Cost Answer the following questions about standard costs. Materials price variance $ 63¢ per lb. $1.00 per lb. 88¢ per lb. Cost Your Answer Correct Answer (Used) What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, e.g. 125.) Materials quantity variance $ 2,181 What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Favorable Attempts: 0 of 2 used Submit Answer
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Transcribed Image Text:Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal"
at this point, but the management is working toward that as a goal. At present, the company uses the following standards.
Materials
Item
Metal
Plastic
Rubber
Item
Labor
Per unit
1 lb.
Cost
15 min.
$9.00 per hr.
Predetermined overhead rate based on direct labor hours = $3.62
(a)
12 oz.
4 oz.
Direct labor
Per unit
The January figures for purchasing, production, and labor are:
(b)
The company purchased 218,100 pounds of raw materials in January at a cost of 79¢ a pound.
Production used 218,100 pounds of raw materials to make 110,000 units in January.
Direct labor spent 18 minutes on each product at a cost of $8.80 per hour.
Overhead costs for January totaled $30,265 variable and $74,000 fixed.
Answer the following questions about standard costs.
Your Answer Correct Answer (Used)
Cost
Save for Later
63¢ per lb.
$1.00 per lb.
88¢ per lb.
Materials price variance $
What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, e.g.
125.)
Materials quantity variance $
2,181
i
What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places,
e.g. 125.)
Favorable
Attempts: 0 of 2 used Submit Answer
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