Compute the following cost variances for the month of July. 1. Material price variance 2. Material quantity variance 3. Labor rate variance 4. Labor efficiency variance 5. Overhead spending variance 6. Volume variance

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Answer 1

Question

Chapter 24, Problem 7AP

a.

To determine

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

b.

To determine

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

c.

To determine

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

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XYZ Company accumulates the following data relative to jobs started and finished during the month of September 2019. Cost and Production Data Actual Standard Raw materials unit cost $2.25 $2.10 Raw materials units used 10,600 10,000 Direct Labor Rate $ 8.40 $ 8.00 Direct Labor hours worked 14,400 15,000 Manufacturing overhead incurred $ 1,89,500.00 Manufacturing overhead applied Compute the total materials variance. a. $2,850 U b. $960 F c. $2,850 F d. $960 U $ 1,93,500.00

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The profit margin would be?

Answer 2

Question

Chapter 24, Problem 7AP

a.

To determine

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

b.

To determine

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

c.

To determine

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 24, Problem 7AP

a.

To determine

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

b.

To determine

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

c.

To determine

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 24, Problem 7AP

a.

To determine

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

b.

To determine

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

c.

To determine

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 24, Problem 7AP

a.

To determine

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

b.

To determine

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

c.

To determine

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Answer 6

Chapter 24, Problem 7AP

a.

To determine

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

Answer 7

Chapter 24, Problem 7AP

a.

To determine

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

Answer 8

b.

To determine

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

Answer 9

b.

To determine

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

Answer 10

c.

To determine

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Answer 11

c.

To determine

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 24 - Prob. 1STQ Ch. 24 - Prob. 2STQ Ch. 24 - 3. An unfavorable overhead volume variance...Ch. 24 - Prob. 4STQ Ch. 24 - Prob. 5STQ Ch. 24 - Prob. 1DQ Ch. 24 - Prob. 2DQ Ch. 24 - Prob. 3DQ Ch. 24 - Prob. 4DQ Ch. 24 - Prob. 5DQ

Compute the following cost variances for the month of July. 1. Material price variance 2. Material quantity variance 3. Labor rate variance 4. Labor efficiency variance 5. Overhead spending variance 6. Volume variance

Concept explainers

Videos

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Want to see the full answer?

Chapter 24 Solutions

Compute the following cost variances for the month of July. 1. Material price variance 2. Material quantity variance 3. Labor rate variance 4. Labor efficiency variance 5. Overhead spending variance 6. Volume variance

Concept explainers

Videos

Compute the following cost variances for the month of July. 1. Material price variance 2. Material quantity variance 3. Labor rate variance 4. Labor efficiency variance 5. Overhead spending variance 6. Volume variance

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July. (1) Direct materials (2) Direct labor (3) Overhead costs.

Comment any significant problems of cost savings revealed by computation of cost variances, and comment any possible causal relationships between significant favorable and unfavorable cost variances.

Want to see the full answer?

Chapter 24 Solutions

Compute the following cost variances for the month of July.

1. Material price variance

2. Material quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

Prepare journal entries to record manufacturing costs to the work in process inventory account and to record cost variance for July.

(1) Direct materials

(2) Direct labor

(3) Overhead costs.