Total Direct Materials Variance: The total material variance is a measure to determine the variation in the amount paid for the actual quantity and the amount that should have been paid based on the standard estimates. This is the sum of the material price variance and the material quantity variance. Direct Material Price Variance: The direct material price variance is a measure to determine the variation in the actual price of the material and the standard price of the material which is estimated. Direct Material Quantity Variance: The direct material quantity variance is a measure to determine the variation in the standard cost of the quantity which is estimated and the actual cost of the quantity which is incurred. To determine: The total, price and quantity material variances.

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.2DIE

To determine

Total Direct Materials Variance: The total material variance is a measure to determine the variation in the amount paid for the actual quantity and the amount that should have been paid based on the standard estimates. This is the sum of the material price variance and the material quantity variance.

Direct Material Price Variance: The direct material price variance is a measure to determine the variation in the actual price of the material and the standard price of the material which is estimated.

Direct Material Quantity Variance: The direct material quantity variance is a measure to determine the variation in the standard cost of the quantity which is estimated and the actual cost of the quantity which is incurred.

To determine: The total, price and quantity material variances.

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Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added Direct labour Production overheads $272,000 $254,000 $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 Direct material added Conversion costs 100% 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 Direct material added 100% 60% 40% Conversion costs There were no unfinished goods in process 2 at the…

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Answer 2

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.2DIE

To determine

Total Direct Materials Variance: The total material variance is a measure to determine the variation in the amount paid for the actual quantity and the amount that should have been paid based on the standard estimates. This is the sum of the material price variance and the material quantity variance.

Direct Material Price Variance: The direct material price variance is a measure to determine the variation in the actual price of the material and the standard price of the material which is estimated.

Direct Material Quantity Variance: The direct material quantity variance is a measure to determine the variation in the standard cost of the quantity which is estimated and the actual cost of the quantity which is incurred.

To determine: The total, price and quantity material variances.

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.2DIE

To determine

Total Direct Materials Variance: The total material variance is a measure to determine the variation in the amount paid for the actual quantity and the amount that should have been paid based on the standard estimates. This is the sum of the material price variance and the material quantity variance.

Direct Material Price Variance: The direct material price variance is a measure to determine the variation in the actual price of the material and the standard price of the material which is estimated.

Direct Material Quantity Variance: The direct material quantity variance is a measure to determine the variation in the standard cost of the quantity which is estimated and the actual cost of the quantity which is incurred.

To determine: The total, price and quantity material variances.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.2DIE

To determine