Price variance: It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual. Quantity variance: It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product. Direct Material cost variance: This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance. To prepare: The journal entry to record direct material transactions.

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Answer 1

Question

Chapter 9, Problem 12ME

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

Direct Material cost variance:

This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance.

To prepare:

The journal entry to record direct material transactions.

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Answer 2

Question

Chapter 9, Problem 12ME

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

Direct Material cost variance:

This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance.

To prepare:

The journal entry to record direct material transactions.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 12ME

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

Direct Material cost variance:

This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance.

To prepare:

The journal entry to record direct material transactions.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 12ME

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

Direct Material cost variance:

This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance.

To prepare:

The journal entry to record direct material transactions.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 12ME

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

Direct Material cost variance:

This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance.

To prepare:

The journal entry to record direct material transactions.

Answer 6

Chapter 9, Problem 12ME

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

Direct Material cost variance:

This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance.

To prepare:

The journal entry to record direct material transactions.

Answer 7

Chapter 9, Problem 12ME

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

Direct Material cost variance:

This amount is calculated as the difference between standard cost and actual cost of direct material. The result is favorable when price variance is more than quantity variance. The result is unfavorable when price variance is less than quantity variance.

To prepare:

The journal entry to record direct material transactions.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 9 - Briefly describe the difference between budgetary...Ch. 9 - What are standard costs? When are they set?Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - How do the master budget, flexible budget, and...

Solution Summary: The author describes the journal entries to record direct material costs and variances of Camino corp.

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