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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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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