Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
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Chapter 23, Problem 13E
Exercise 23-13 Computing and interpreting materials variances P3 
Hart Company made 3,000 bookshelves using 22,000 board feet of wood costing $266,200. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12 per board foot.
1. Compute the direct materials price and quantity variances and classify each as favorable or unfavorable.
2. Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which direct materials variances will Hart investigate further?
Check Price variance, $2,200 U
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QS 23-8 Materials variances P3
Tercer reports the following for one of its products. Compute the direct materials price and quantity variances and classify each as favorable or unfavorable.
Actual finished units produced....
Direct materials standard (4 lbs. @ $2 per Ib.) ... $8 per finished unit
300,000 lbs.
60,000 units
Actual direct materials used
Actual cost of direct materials used...
$540,000
Please do not give solution in image format thanku
Exercise 21-16 (Algo) Computing and analyzing direct labor variances LO P3
Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, the company actually
uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, the company uses 15,500 hours of
direct labor at a $244,125 total cost to produce 6,500 units of product.
AH Actual Hours
SH
AR
SR
Standard Hours
Actual Rate
Standard Rate
(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two
months.
(2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate
further?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months.…
Chapter 23 Solutions
Fundamental Accounting Principles
Ch. 23 - Prob. 1DQCh. 23 - Prob. 2DQCh. 23 - Prob. 3DQCh. 23 - Prob. 4DQCh. 23 - Prob. 5DQCh. 23 - Prob. 6DQCh. 23 - Prob. 7DQCh. 23 - Prob. 8DQCh. 23 - Prob. 9DQCh. 23 - Prob. 10DQ
Ch. 23 - Prob. 11DQCh. 23 - Prob. 12DQCh. 23 - Prob. 13DQCh. 23 - How can the manager of advertising sales at Google...Ch. 23 - Prob. 15DQCh. 23 - Prob. 16DQCh. 23 - Is it possible to evaluate a cost center’s...Ch. 23 - Prob. 18DQCh. 23 - Prob. 1QSCh. 23 - Prob. 2QSCh. 23 - Prob. 3QSCh. 23 - Prob. 4QSCh. 23 - Prob. 5QSCh. 23 - Prob. 6QSCh. 23 - Prob. 7QSCh. 23 - Prob. 8QSCh. 23 - Prob. 9QSCh. 23 - Prob. 10QSCh. 23 - Prob. 11QSCh. 23 - Prob. 12QSCh. 23 - Prob. 13QSCh. 23 - Prob. 14QSCh. 23 - Volume variance P3 Refer to information in QS...Ch. 23 - Prob. 16QSCh. 23 - Prob. 17QSCh. 23 - Prob. 18QSCh. 23 - Prob. 19QSCh. 23 - Prob. 20QSCh. 23 - Prob. 21QSCh. 23 - Prob. 22QSCh. 23 - Prob. 23QSCh. 23 - Prob. 24QSCh. 23 - Exercise 23-1 Management by exception C1 Resset...Ch. 23 - Prob. 2ECh. 23 - Exercise 23-2 Preparing flexible budgets P1 Tempo...Ch. 23 - Prob. 4ECh. 23 - Prob. 5ECh. 23 - Prob. 6ECh. 23 - Prob. 7ECh. 23 - Prob. 8ECh. 23 - Prob. 9ECh. 23 - Prob. 10ECh. 23 - Prob. 11ECh. 23 - Prob. 12ECh. 23 - Exercise 23-13 Computing and interpreting...Ch. 23 - Prob. 14ECh. 23 - Exercise 23-15
Direct materials and direct labor...Ch. 23 - Prob. 16ECh. 23 - Prob. 17ECh. 23 - Exercise 23-18A Detailed overhead variances P5...Ch. 23 - Prob. 19ECh. 23 - Prob. 20ECh. 23 - Prob. 21ECh. 23 - Prob. 22ECh. 23 - Prob. 23ECh. 23 - Prob. 1APSACh. 23 - Prob. 2APSACh. 23 - Prob. 3APSACh. 23 - Prob. 4APSACh. 23 - Prob. 5APSACh. 23 - Prob. 6APSACh. 23 - Prob. 2BPSBCh. 23 - Prob. 3BPSBCh. 23 - Prob. 4BPSBCh. 23 - Prob. 5BPSBCh. 23 - Prob. 6BPSBCh. 23 - Prob. 23SPCh. 23 - Flexible budgets and standard costs emphasize the...Ch. 23 - Prob. 2AACh. 23 - Prob. 3AACh. 23 - Prob. 1BTNCh. 23 - Prob. 2BTNCh. 23 - Prob. 3BTNCh. 23 - Prob. 4BTNCh. 23 - Prob. 5BTNCh. 23 - Training employees to use standard amounts of...
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- Refer to Exercise 9.17. Chypre, Inc., purchased the amount used of each direct material input on May 2 for the following actual prices: solvent mix for 5.20 per gallon, and aromatic compound for 8,010 per gallon. Required: 1. Compute and journalize the direct materials price variances. 2. Compute and journalize the direct materials usage variances. 3. Offer some possible reasons for why the variances occurred. Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet: On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Required: 1. Calculate the yield ratio. 2. Calculate the standard cost per unit of the yield. (Round to the nearest cent.) 3. Calculate the direct materials yield variance. (Round to the nearest cent.) 4. Calculate the direct materials mix variance. (Round to the nearest cent.)arrow_forwardfolllow akk this questionarrow_forwardQuestion 8.2 The following materials standards have been established for product Wand: Standard quantity per unit of output 10.0 kilograms Standard price $16.20 per kilograms The following data pertains to operations concerning product Wand for the last month: Actual materials purchased 7,300 kilograms Actual cost of materials purchased $120,000 Actual materials used in production 7,122 kilograms Actual output 740 units Required: What is the materials price variance for the month? What is the materials quantity variance for the month?arrow_forward
- 17arrow_forwardQuestion Content Area Myers Corporation has the following data related to direct materials costs for November: actual cost for 4, 690 pounds of material at $5.30 and standard cost for 4, 410 pounds of material at $6.30 per pound. The direct materials price variance is a. $1,764 favorable b. $4,690 favorable c. $1,764 unfavorable d. $4,690 unfavorablearrow_forward8arrow_forward
- Problem 8 Material and Labor Variance Journal Entries Clyette Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: Direct labor 2.5 meters @ P14 per meter 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: • 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Required: Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.arrow_forwardAnswer plsarrow_forwardExercise 3-8. Material Variances me following materials standards have established for a particular product: 5.20 meters Standard quantity per unit of output Standard Price P15.60 per meter The following data pertain to operations concerning the product for the last month: 17,000 meters Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output 16,400 meters 3.280 units Required: a. What is the material price usage, material quantity and total material variance. b. What is the material purchase price and material inventory yariance.arrow_forward
- Exercise 23-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $5 per pound) Direct labor (3 hours @ $16 per hour) $ 75 48 During May the company incurred the following actual costs to produce 8,300 units. Direct materials (128,300 pounds @ $4.80 per pound) Direct labor (29,500 hours @ $16.10 per hour) AR = Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP - Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost $ $615,840 474,950 0 $ 0 0 $ 0 Required 2 >…arrow_forwardExercise 21-24 (Static) Controllable and volume variances LO P4 Shaw Incorporated began this period with a budget for 1,000 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $92,000, and actual units produced were 900. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable overhead Fixed overhead $ se, eee 40,000 Total overhead $ 90, ee0 a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below. Required A Required B Compute volume variance. (Indicate the effect of the varlance by selecting favorable, unfavorable, or no varlance.) Volume Variance Standard overhead applied Budgeted (fexible) overhead at units produced 85,000 Volume variance Unfavorablearrow_forwardE 6-2 Materials Price Variance Hogan Manufacturing Company has just adopted a standard cost system. You have been asked to analyze the materials purchases and usage for the month of August to determine the materials price variance to be recorded at the end of the month. During August, 5,000 gallons of a chemical were purchased at $3.10 per gallon. Only 4,600 STUKENT gallons were put into production. The standard price per gallon is $3.20. Compute the following variances: 4 1. The materials price variance if the chemical is carried in inventory at standard price (i.e., the price variance is accounted for at the time of purchase). 2. The materials price variance if the chemical is carried in inventory at actual price and is charged to Work-in-Process Inventory at the standard price (i.e., the price variance is accounted for at the time of use in production).arrow_forward
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