Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business. Direct Material Variance: The variance which is used to determine the variation in the standard direct material and actual direct material is called direct material variance. It is the sum of material price variance and material quantity variance. Material Price Variance: The variance which is used to find the changes in actual price over and above to the estimated price is called material price variance. It is the variation in actual paid for material and the estimated amount required to be paid for the material. Material Quantity Variance: The variance which is used to compare the in the actual quantity of materials utilized in production with estimated quantity of materials material that is supposed to be used in production and helps to find variation is called material quantity variance. To determine: Total materials, price and quantity variances.

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Answer 1

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 25.5E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Direct Material Variance: The variance which is used to determine the variation in the standard direct material and actual direct material is called direct material variance. It is the sum of material price variance and material quantity variance.

Material Price Variance: The variance which is used to find the changes in actual price over and above to the estimated price is called material price variance. It is the variation in actual paid for material and the estimated amount required to be paid for the material.

Material Quantity Variance: The variance which is used to compare the in the actual quantity of materials utilized in production with estimated quantity of materials material that is supposed to be used in production and helps to find variation is called material quantity variance.

To determine: Total materials, price and quantity variances.

(b)

To determine

The total price and quantity variances for material if the quantity purchased and used is 28,000 units.

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Answer 2

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 25.5E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Direct Material Variance: The variance which is used to determine the variation in the standard direct material and actual direct material is called direct material variance. It is the sum of material price variance and material quantity variance.

Material Price Variance: The variance which is used to find the changes in actual price over and above to the estimated price is called material price variance. It is the variation in actual paid for material and the estimated amount required to be paid for the material.

Material Quantity Variance: The variance which is used to compare the in the actual quantity of materials utilized in production with estimated quantity of materials material that is supposed to be used in production and helps to find variation is called material quantity variance.

To determine: Total materials, price and quantity variances.

(b)

To determine

The total price and quantity variances for material if the quantity purchased and used is 28,000 units.

Expert Solution & Answer

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Check out a sample textbook solution

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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 25.5E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Direct Material Variance: The variance which is used to determine the variation in the standard direct material and actual direct material is called direct material variance. It is the sum of material price variance and material quantity variance.

Material Price Variance: The variance which is used to find the changes in actual price over and above to the estimated price is called material price variance. It is the variation in actual paid for material and the estimated amount required to be paid for the material.

Material Quantity Variance: The variance which is used to compare the in the actual quantity of materials utilized in production with estimated quantity of materials material that is supposed to be used in production and helps to find variation is called material quantity variance.

To determine: Total materials, price and quantity variances.

(b)

To determine

The total price and quantity variances for material if the quantity purchased and used is 28,000 units.

Expert Solution & Answer

Want to see the full answer?

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 25.5E

(a)

To determine