Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 8, Problem 5EB
Smith Industries uses a cost system that carries direct materials inventory at a
Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith
Industries paid $39,370 for the 15,500 pounds of material.
A. What was the direct materials price variance for July?
B. What was the direct materials quantity variance for July?
C. What is the total direct materials cost variance?
D. If Smith Industries used 15,750 pounds to make the baskets, what would be the direct materials quantity variance?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
General Account
What is amount of Income Or Loss?
I won't to this question answer general Accounting
Chapter 8 Solutions
Principles of Accounting Volume 2
Ch. 8 - Why does a company use a standard costing system?...Ch. 8 - This standard is set at a level that may be...Ch. 8 - This standard is set at a level that could be...Ch. 8 - This variance is the difference involving spending...Ch. 8 - This variance is the difference involving spending...Ch. 8 - What are some possible reasons for a material...Ch. 8 - When is the material price variance unfavorable?...Ch. 8 - When is the material price variance favorable? A....Ch. 8 - What are some reasons for a material quantity...Ch. 8 - When is the material quantity variance favorable?...
Ch. 8 - When is the material quantity unfavorable? A. when...Ch. 8 - What are some possible reasons for a labor rate...Ch. 8 - When is the labor rate variance unfavorable? A....Ch. 8 - When is the labor rate variance favorable? A. when...Ch. 8 - What are some possible reasons for a direct labor...Ch. 8 - When is the direct labor time variance favorable?...Ch. 8 - When is the direct labor time variance...Ch. 8 - A flexible budget______. A. predicts estimated...Ch. 8 - The variable overhead rate variance is caused by...Ch. 8 - The variable overhead efficiency variance is...Ch. 8 - The fixed factory overhead variance is caused by...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - Which of the following is a possible cause of an...Ch. 8 - What two components are needed to determine a...Ch. 8 - What two components are needed to determine a...Ch. 8 - What elements require consideration before...Ch. 8 - What is a variance?Ch. 8 - What causes the material price variance?Ch. 8 - What causes the material quantity variance?Ch. 8 - What are some possible causes of a material price...Ch. 8 - What are some possible causes of a material...Ch. 8 - What is the direct labor rate variance?Ch. 8 - What is the direct labor time variance?Ch. 8 - What are some possible causes of a direct labor...Ch. 8 - What are some possible causes of a direct labor...Ch. 8 - How is the total direct labor variance calculated?Ch. 8 - What causes the variable overhead rate variance?Ch. 8 - What causes the variable overhead efficiency...Ch. 8 - What is the main difference between a flexible...Ch. 8 - What causes a favorable variance?Ch. 8 - What causes an unfavorable variance?Ch. 8 - When might a favorable variance not be a good...Ch. 8 - When might an unfavorable variance be a good...Ch. 8 - Identify several causes of a favorable material...Ch. 8 - Identify several causes of an unfavorable material...Ch. 8 - Identify several causes of a favorable material...Ch. 8 - Identify several causes of an unfavorable material...Ch. 8 - Identify several causes of a favorable labor rate...Ch. 8 - Identity several causes of an unfavorable labor...Ch. 8 - Identify several causes of a favorable labor...Ch. 8 - Identify several causes of an unfavorable labor...Ch. 8 - Moisha is developing material standards for her...Ch. 8 - Rene is working with the operations manager to...Ch. 8 - Fiona cleans offices. She is allowed 5 seconds per...Ch. 8 - Use the information provided to create a standard...Ch. 8 - Sitka Industries uses a cost system that carries...Ch. 8 - Use the information provided to answer the...Ch. 8 - Dog Bone Bakery, which bakes dog treats, makes a...Ch. 8 - Queen Industries uses a standard costing system in...Ch. 8 - Penny Company manufactures only one product and...Ch. 8 - ThingOne Company has the following information...Ch. 8 - A manufacturer planned to use $78 of variable...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Bristol is developing material standards for her...Ch. 8 - Salley is developing material and labor standards...Ch. 8 - Use the following information to create a standard...Ch. 8 - Mateo makes gizmos. He would like to set up a...Ch. 8 - Smith Industries uses a cost system that carries...Ch. 8 - Lizbeth, Inc., makes ice cream. The toffee coffee...Ch. 8 - Woodpecker manufactures sawmill equipment. They...Ch. 8 - Case made 24,500 units during June, using 32,000...Ch. 8 - Eagle Inc. uses a standard cost system. During the...Ch. 8 - A manufacturer planned to use $45 of variable...Ch. 8 - Fitzgerald Company manufactures sewing machines,...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - Acme Inc. has the following information available:...Ch. 8 - The comptroller wants to set the standards...Ch. 8 - Stan is opening a coffee shop next to Big State...Ch. 8 - What makes a variance favorable? Give an example...Ch. 8 - April Industries employs a standard costing system...Ch. 8 - Ed Co. manufactures two types of O rings, large...Ch. 8 - The Whizbang Company makes a special type of toy....Ch. 8 - Ellis Companys labor information for September is...Ch. 8 - Breakaway Companys labor information for May is as...Ch. 8 - Power Co.s labor information for June is as...Ch. 8 - Prepare a flexible budget for overhead based on...Ch. 8 - Reddy Corporation has collected the following data...Ch. 8 - ABC Inc. spent a total of $48,000 on factory...Ch. 8 - Recompute the variances from the second Acme Inc....Ch. 8 - Sameerah is trying to determine the standard hours...Ch. 8 - Carl cleans offices. He has the following...Ch. 8 - Freidrich is working with the operations manager...Ch. 8 - A company bought 45,000 pounds of plastic pellets...Ch. 8 - Illinois Company is a medium-sized company that...Ch. 8 - Corolla Manufacturing has a standard cost for...Ch. 8 - Marymount Company makes one product. In the month...Ch. 8 - Adam Inc.s records for May include the following...Ch. 8 - Ribcos labor cost information for making its only...Ch. 8 - Use the following standard cost card for 1 gallon...Ch. 8 - Use the following standard cost card for 1 gallon...Ch. 8 - How do you balance a firms need to succeed and the...Ch. 8 - What type of firm would use standard costing? What...Ch. 8 - Is labor a true variable cost?Ch. 8 - Why would managers use a flexible budget? What...Ch. 8 - Fill in the blanks in the following flexible...Ch. 8 - Before automation became more prevalent, overhead...Ch. 8 - In your opinion, is it important that an...
Additional Business Textbook Solutions
Find more solutions based on key concepts
11-13. Discuss how your team is going to identify the existing competitors in your chosen market. Based on the ...
Business Essentials (12th Edition) (What's New in Intro to Business)
13. Indicate how each of these accounts should be classified in the stockholders’ equity section of the balance...
Financial Accounting: Tools for Business Decision Making, 8th Edition
Management accounting should not fit the straitjacket of financial accounting. Explain and give an example.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
1-1. Define marketing and outline the steps in the marketing process. (AASCB: Communication)
Marketing: An Introduction (13th Edition)
Describe and evaluate what Pfizer is doing with its PfizerWorks.
Management (14th Edition)
Net Operating Loss, Carryforward, Tax Rate Change. Hamilton Container Company reported the following income (lo...
Intermediate Accounting (2nd Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Verma Inc.'s total assets at the beginning of the year amount to $500,000,000, and its total assets at the end of the year amount to $250,000,000. If its return on assets for the year is 28%, what is Verma's net income for the year?arrow_forwardSuperior electronic reported sales solve this accounting questionsarrow_forwardAt the end of April, Nina Company had completed Jobs 50 and 51. Job 50 is for 23,040 units, and Job 51 is for 26,000 units. The following data relate to these two jobs: On April 6, Nina Company purchased on account 60,000 units of raw materials at $12 per unit. On April 21, raw materials were requisitioned for production as follows: 25,000 units for Job 50 at $10 per unit and 27,000 units for Job 51 at $12 per unit. During April, Nina Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. The total direct labor was incurred at a rate of $20.00 per direct labor hour for Job 50 and $22.00 per direct labor hour for Job 51. Nina Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000. Determine the balance on the account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded on job cost sheets for Jobs 50 and 51 at the end of…arrow_forward
- Subject = General Accountarrow_forwardChipa Corp. started the year with total assets of $303,000 and total liabilities of $243,000. During the year the business recorded $631,000 in revenues, $329,000 in expenses, and dividends of $57,000. Stockholders' equity at the end of the year was _. Solve the financial accounting problem.arrow_forwardDo fast answer of this accounting questionsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY