The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014. Given information: Direct Material Variances: Standard Price is $4.50. Actual Price is $65,000. Actual Material Purchased is 100,000 units. Actual Quantity is 98,055 units. Direct Manufacturing Labor Variances: Standard Rate is $30 per hour. Standard working hours are 4,925 hours. Actual Labor Payments are $154,350. Actual hours worked are 4,900 hours.

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Answer 1

Question

Chapter 7, Problem 7.24E

1.

To determine

The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014.

Given information:

Direct Material Variances:

Standard Price is $4.50.

Actual Price is $65,000.

Actual Material Purchased is 100,000 units.

Actual Quantity is 98,055 units.

Direct Manufacturing Labor Variances:

Standard Rate is $30 per hour.

Standard working hours are 4,925 hours.

Actual Labor Payments are $154,350.

Actual hours worked are 4,900 hours.

2.

To determine

Journal entries of Material and Manufacturing Labor Variance.

3.

To determine

To explain: Reason of Variances in Material and Labor.

4.

To determine

Reasons for calculating Price and efficiency variances at different point of time in a year.

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Answer 2

Question

Chapter 7, Problem 7.24E

1.

To determine

The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014.

Given information:

Direct Material Variances:

Standard Price is $4.50.

Actual Price is $65,000.

Actual Material Purchased is 100,000 units.

Actual Quantity is 98,055 units.

Direct Manufacturing Labor Variances:

Standard Rate is $30 per hour.

Standard working hours are 4,925 hours.

Actual Labor Payments are $154,350.

Actual hours worked are 4,900 hours.

2.

To determine

Journal entries of Material and Manufacturing Labor Variance.

3.

To determine

To explain: Reason of Variances in Material and Labor.

4.

To determine

Reasons for calculating Price and efficiency variances at different point of time in a year.

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 7.24E

1.

To determine

The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014.

Given information:

Direct Material Variances:

Standard Price is $4.50.

Actual Price is $65,000.

Actual Material Purchased is 100,000 units.

Actual Quantity is 98,055 units.

Direct Manufacturing Labor Variances:

Standard Rate is $30 per hour.

Standard working hours are 4,925 hours.

Actual Labor Payments are $154,350.

Actual hours worked are 4,900 hours.

2.

To determine

Journal entries of Material and Manufacturing Labor Variance.

3.

To determine

To explain: Reason of Variances in Material and Labor.

4.

To determine

Reasons for calculating Price and efficiency variances at different point of time in a year.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.24E

1.

To determine

The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014.

Given information:

Direct Material Variances:

Standard Price is $4.50.

Actual Price is $65,000.

Actual Material Purchased is 100,000 units.

Actual Quantity is 98,055 units.

Direct Manufacturing Labor Variances:

Standard Rate is $30 per hour.

Standard working hours are 4,925 hours.

Actual Labor Payments are $154,350.

Actual hours worked are 4,900 hours.

2.

To determine

Journal entries of Material and Manufacturing Labor Variance.

3.

To determine

To explain: Reason of Variances in Material and Labor.

4.

To determine

Reasons for calculating Price and efficiency variances at different point of time in a year.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.24E

1.

To determine

The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014.

Given information:

Direct Material Variances:

Standard Price is $4.50.

Actual Price is $65,000.

Actual Material Purchased is 100,000 units.

Actual Quantity is 98,055 units.

Direct Manufacturing Labor Variances:

Standard Rate is $30 per hour.

Standard working hours are 4,925 hours.

Actual Labor Payments are $154,350.

Actual hours worked are 4,900 hours.

2.

To determine

Journal entries of Material and Manufacturing Labor Variance.

3.

To determine

To explain: Reason of Variances in Material and Labor.

4.

To determine

Reasons for calculating Price and efficiency variances at different point of time in a year.

Answer 6

Chapter 7, Problem 7.24E

1.

To determine

The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014.

Given information:

Direct Material Variances:

Standard Price is $4.50.

Actual Price is $65,000.

Actual Material Purchased is 100,000 units.

Actual Quantity is 98,055 units.

Direct Manufacturing Labor Variances:

Standard Rate is $30 per hour.

Standard working hours are 4,925 hours.

Actual Labor Payments are $154,350.

Actual hours worked are 4,900 hours.

Answer 7

Chapter 7, Problem 7.24E

1.

To determine

The Price Variance and Efficiency Variances for Direct Material and Direct Manufacturing Labor for the year 2014.

Given information:

Direct Material Variances:

Standard Price is $4.50.

Actual Price is $65,000.

Actual Material Purchased is 100,000 units.

Actual Quantity is 98,055 units.

Direct Manufacturing Labor Variances:

Standard Rate is $30 per hour.

Standard working hours are 4,925 hours.

Actual Labor Payments are $154,350.

Actual hours worked are 4,900 hours.

Answer 8

2.

To determine

Journal entries of Material and Manufacturing Labor Variance.

Answer 9

2.

To determine

Journal entries of Material and Manufacturing Labor Variance.

Answer 10

3.

To determine

To explain: Reason of Variances in Material and Labor.

Answer 11

3.

To determine

To explain: Reason of Variances in Material and Labor.

Answer 12

4.

To determine

Reasons for calculating Price and efficiency variances at different point of time in a year.

Answer 13

4.

To determine

Reasons for calculating Price and efficiency variances at different point of time in a year.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 7 - What is the relationship between management by...Ch. 7 - What are two possible sources of information a...Ch. 7 - Distinguish between a favorable variance and an...Ch. 7 - What is the key difference between a static budget...Ch. 7 - Why might managers find a flexible-budget analysis...Ch. 7 - Describe the steps in developing a flexible...Ch. 7 - List four reasons for using standard costs.Ch. 7 - How might a manager gain insight into the causes...Ch. 7 - List three causes of a favorable direct materials...Ch. 7 - Describe three reasons for an unfavorable direct...

Journal entries of Material and Manufacturing Labor Variance.

To explain: Reason of Variances in Material and Labor.

Reasons for calculating Price and efficiency variances at different point of time in a year.

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