Which of the following would produce a materials price variance? a. An excess quantity of materials used b. An excess number of direct labor hours worked in completing a job c. Shipping materials to the plant by air freight rather than by truck d. Breakage of materials in production

Which of the following would produce a materials price variance? a. An excess quantity of materials used b. An excess number of direct labor hours worked in completing a job c. Shipping materials to the plant by air freight rather than by truck d. Breakage of materials in production

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 9MCQ: The materials price variance is usually computed a. when goods are finished. b. when materials are...

See similar textbooks

Related questions

Q: A manufactured product has the following information for June. Actual Standard Direct materials 7…

A: Explanation for 1: Standard cost per unit can be calculated as shown in the table…

Q: At the beginning of the year, manufacturing overhead for the year was estimated to be $916,725. At…

A: Explanation of Manufacturing Overhead: Manufacturing overhead includes all indirect costs associated…

Q: Precilla Company uses a standard costing system that allows 2 pounds of direct materials for one…

A: Key InformationStandard direct material cost per unit:Allowed cost for units manufactured =…

Q: Quick answer of this accounting questions

A: To calculate the effective rate of interest (ERI) in this scenario, follow these steps:Step 1:…

Q: Financial Accounting Question

A: Step 1: Define Rate of ReturnRate of Return measures the percentage gain or loss on an investment…

Q: Need answer

A: Given:Expected return = 16.20%Variance (V2) = 0.6400Standard deviation = 0.8000…

Q: None

A: Step 1: Identify Given DataInitial Investment (Cost of Receivables): $185,000Amount Collected:…

Q: What is Adrian's gross profit and net profit in dollars?

A: The question requires the determination of the gross profit and net profit. Gross profit for a…

Q: Help

A: To understand the firm's financial situation better, we can derive the following key metrics based…

Q: hello tutor give me correct answer of this General accounting question

A: Step 1: Definition of After-Tax Rate of ReturnThe after-tax rate of return reflects the actual…

Q: None

A: Step 1: Definition of MarkupMarkup is the difference between the selling price and the cost price of…

Q: What is the return on equity on these general accounting question?

A: Step 1:Calculate the debt as follows:Debt equity ratio = Debt / Equity0.85 =…

Q: What was the allocation to product X

A: Step 1: Calculate the total overhead for all productsTotal overhead for Department 1:…

Q: Accurate Answer

A: Step 1: Off-Balance Sheet Transactions — How I Thought About ItThe first thing I did was ask myself,…

Q: Variable overhead:7 fixed: overhead:8

A: Detailed explanation:Capacity: 55,000 unitsCurrent Production and Existing Sales : 50,000…

Q: give me correct answer of this General accounting question

A: To calculate the expected return on the stock, we use the Capital Asset Pricing Model (CAPM)…

Q: Financial accounting

A: Explanation of Price-Earnings (P/E) Ratio:The Price-Earnings Ratio (P/E Ratio) is a financial metric…

Q: MCQ

A: **Explanation:** The **balanced scorecard approach**, developed by Kaplan and Norton, is a…

Q: During 2017, Vaughn Manufacturing had sales on account of $828,000, cash sales of $465,000, and…

A: Explanation of Credit Sales:Credit sales refer to sales made on account where the customer is…

Q: Ans

A: ROCE=Net Income per Share/Book Value per ShareWhere:Net Income per Share = Analysts' earnings…

Q: What is the actual total direct materials cost for the current period???

A: Step 1: Calculation of direct material cost varianceDirect material cost variance is sum of direct…

Q: Blake factoring

A: Step 1: Given Value for Calculation Purchase Price = p = $185,000Number of days = n = 75 daysAmount…

Q: NO AI ANSWER

A: To determine the stock price, we can use the relationship between the price-earnings (P/E) ratio and…

Q: ?

A: In cash flow hedges, the hedging reserve represents the accumulated changes in the fair value of the…

Q: None

A: The after-tax salvage value can be calculated by considering the tax implications of selling the…

Q: D.P. May has a net income of $44,000, total assets of $442,000, total liabilities of $211,000, and a…

A: To calculate the firm's price-earnings (P/E) ratio, we need to use the formula:P/E=Price per…

Q: Financial accounting problem

A: Explanation: Following data is given for the current year 2012:Cost of producing one unit of part T5…

Q: financial accounting

A: Explanation: The required rate can be calculated using the formula of calculating stock price by…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Organizational ExpendituresOrganizational expenditures are the costs that a…

Q: ??

A: The question pertains to cash flow hedges. A cash flow hedge is employed to manage fluctuations in…

Q: general accounting

A: Step 1: Information providedNet income in 2023 = $275,000Rate of increase in net income = 18.7% or…

Q: given answer Financial accounting question

A: Step 1: Define Cost of Common Equity The cost of common equity is the return that a company requires…

Q: Total fixed cost

A: Explanation of High-Low Method:The high-low method is a cost estimation technique used to separate…

Q: Calculate the cost per equivalent unit of conversion

A: To calculate the cost per equivalent unit of conversion, follow these steps: Step 1: Calculate the…

Q: General Accounting 10.5

A: Step 1:Calculate the total equity as follows:D/E ratio = Debt / Equity 40% = $350,000 /…

Q: Calculate the gross profit of a company??

A: Step 1: Definition of Gross ProfitGross profit is the difference between a company's sales revenue…

Q: 5 PTS

A: ROE= Net Income/ EquityStep 1: Find the EquityThe debt-to-equity ratio is given as 40%, which can…

Q: provide correct answer General accounting question

A: Step 1: Definition of PurchasesPurchases refer to the inventory bought by a company during a…

Q: How to calculate the gross profit based

A: To calculate the Gross Profit, we can use the following formula: Gross Profit = Sales - Cost of…

Q: Financial accounting question

A: Step 1:The equivalent tax yield is the rate of return that an investor should earn on the taxable…

Q: General accounting problem

A: Explanation of Net Income/Net Loss: This represents the difference between ending capital and…

Q: None

A: Step 1: Definition of Debt to Equity RatioThe debt to equity ratio measures the proportion of a…

Q: Waterway Industries expects direct materials cost of $8 per unit for 50,000 units (a total of…

A: To determine the correct pairing of standard and budgeted direct materials costs for Waterway…

Q: NO WRONG ANSWER

A: Concept of Variable Costs:Variable costs are expenses that change directly with the level of…

Q: General accounting question

A: Step 1: Definition of Merchandise Inventory CostThe total cost of merchandise inventory includes all…

Q: Net income

A: To solve this, we use the formula for Return on Equity (ROE): ROE =Net Income / Total Equity Given…

Q: Erie Co. manufactures a mobile fitness device called the Jogging Mate. The company uses standards to…

A: Step 1: Understanding the ProblemWe are tasked with calculating the standard labor cost allowed…

Q: General Accounting Question Solution

A: 2. This contains information about KGS Mining's equipment usage policy and shift-based monitoring.…

Q: What is the contribution margin per sunit sold ?

A: Step 1: Definition of Contribution MarginThe Contribution Margin is the amount remaining from sales…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Return on Equity (ROE)ROE (Return on Equity) measures a company's…

Question

Solve general accounting

Which of the following would produce a materials price variance?
a. An excess quantity of materials used
b. An excess number of direct labor hours worked in completing a job
c. Shipping materials to the plant by air freight rather than by truck
d. Breakage of materials in production

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What are some reasons for a material quantity variance? A. building rental charges increase B. labor rate decreases C. more qualified workers D. labor efficiency increases
Why does a company use a standard costing system? A. to identify variances from actual cost that assist them in maintaining profits B. to identify nonperformers in the workplace C. to identify what vendors are unreliable D. to identify defective materials
What are some possible reasons for a labor rate variance? A. hiring of less qualified workers B. an excess of material usage C. material price increase D. utilities usage change
The fixed factory overhead variance is caused by the difference between which of the following? A. actual and standard allocation base B. actual and budgeted Units C. actual fixed overhead and applied fixed overhead D. actual and standard overhead rates
Which of the following is the most likely explanation for an unfavorable materials usage variance and a favorable labor wage variance? a. The new labor contract increased wages. b. Higher quality materials were purchased, resulting in less waste. c. The company experience labor turnover and newer, less experienced workers were hired. d. A new supplier offered a lower price for materials.
Which of the following is a possible cause of an unfavorable material quantity variance? A. purchasing substandard material B. hiring higher-quality workers C. paying more than should have for workers D. purchasing too much material
Which of the following is a possible cause of an unfavorable labor rate variance? A. hiring too many workers B. hiring higher-quality workers at a higher wage C. making too many units D. purchasing too much material
Use the information provided to answer the questions. All material purchased was used in production. A. What is the standard price paid for materials? B. What is the direct materials quantity variance? C. What is the total direct materials cost variance? D. If the direct materials price variance was unfavorable, what would be the standard price?
A. Describe the two variances between the actual costs and the standard costs for factory overhead. B. What is a factory overhead cost variance report?
Which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring substandard workers B. making too many Units C. buying higher-quality material D. paying too much for workers
The materials price variance should be computed a. when materials are purchased b. when materials are used in production c. based upon the amount of materials used in production when only a portion of materials purchased is actually used d. based upon the difference between the actual quantity of inputs and the standard quantity allowed for output times the standard price
Which of the following would produce a labor rate variance? A. Poor quality materials causing breakage and work interruptions.B. Use of persons with high hourly wage rates in tasks that call for low hourly wage rates.C. Excessive number of hours worked in completing a job.D. An unfavorable variable overhead spending variance.