--/1 Question 6 View Policies Current Attempt in Progress Crane Company has a materials price standard of $2.00 per pound. 4000 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4000 pounds, although the standard quantity allowed for the output was 3400 pounds. ort S. Crane Company's materials price variance is O $120 U. O $680 U. O $800 U. O $800 F. hp 110 fg 144 f8 f6 17 f5 00 II 96

--/1 Question 6 View Policies Current Attempt in Progress Crane Company has a materials price standard of $2.00 per pound. 4000 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4000 pounds, although the standard quantity allowed for the output was 3400 pounds. ort S. Crane Company's materials price variance is O $120 U. O $680 U. O $800 U. O $800 F. hp 110 fg 144 f8 f6 17 f5 00 II 96

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 18E: Refer to Exercise 9.17. Chypre, Inc., purchased the amount used of each direct material input on May...

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Refer to Exercise 9.17. Chypre, Inc., purchased the amount used of each direct material input on May 2 for the following actual prices: solvent mix for 5.20 per gallon, and aromatic compound for 8,010 per gallon. Required: 1. Compute and journalize the direct materials price variances. 2. Compute and journalize the direct materials usage variances. 3. Offer some possible reasons for why the variances occurred. Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies for bottling and sale to consumers. Chypre developed the following standard cost sheet: On May 2, Chypre produced a batch of 1,000 gallons with the following actual results: Required: 1. Calculate the yield ratio. 2. Calculate the standard cost per unit of the yield. (Round to the nearest cent.) 3. Calculate the direct materials yield variance. (Round to the nearest cent.) 4. Calculate the direct materials mix variance. (Round to the nearest cent.)
Future Corporation has collected the following data for one of its products: Direct materials standard (3 pounds per unit 50.44/lb.) 51.32 per finished good Actual direct materials purchased 30,000 pounds Actual Direct Materials Used ( AQU) 34,000 pounds Actual Price (AP) paid per pound $0.64 How much is the direct materials price variance? Question content area bottom Part 1 A. 56,000 favorable B. $6,000 unfavorable C. 56,800 unfavorable D. 56,800 favorable
A company purchases 48000 pounds of materials. The materials price variance is $12000 favorable. What is the difference between the standard price and the actual price paid for the materials? $1.00 $4.00 $0.25 Cannot be determined from the data provided.
3. Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Standard Quantity X Standard Price = Standard Cost Direct materials 5 pounds $2.60 $18.00 Direct Labor 1.25 hours $12.00 per hour $15.00 Total prime cost X X $33.00 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. 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. Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Material Price ? ? Material Quantity ? ? Total DM Cost Variance ? ?
Mandy Co. adopted a standard cost system several years ago. The standard costs for the prime costs of its single product follow: Material: 10 kg @ P4.50/kg P45.00 Labor: 6 hours @ P8.50/hr P51.00 The following operating data were taken from the records for November: Units completed 5,800 units Budgeted output 6,000 units Materials purchased 60,000 kg Total actual labor costs P306,600 Actual hours of labor 36,500 hours Material usage variance P2,250 unfavorable Total material variance P450 unfavorable 1. Compute for the actual cost paid per kilogram 2. Compute for the Labor Efficiency Variance
Mandy Co. adopted a standard cost system several years ago. The standard costs for the prime costs of its single product follow: Material: 10 kg @ P4.50/kg P45.00 Labor: 6 hours @ P8.50/hr P51.00 The following operating data were taken from the records for November: Units completed 5,800 units Budgeted output 6,000 units Materials purchased 60,000 kg Total actual labor costs P306,600 Actual hours of labor 36,500 hours Material usage variance P2,250 unfavorable Total material variance P450 unfavorable Required: Compute for the following: Actual material used Actual cost paid per kilogram Labor rate variance Labor efficiency variance
Problem 1 Marietta co. adopted a standard cost system several years ago. The standard costs for the prime costs of its single product follow: Material: 10 kg @ P4.50/kg P45.00 Labor: 6 hours @ P8.50/hr P51.00 The following operating data were taken from the records for November: Units completed 5,800 units Budgeted output 6,000 units Materials purchased 60,000 kg Total actual labor costs P306,600 Actual hours of labor 36,500 hours Material usage variance P2,250 unfavorable Total material variance P450 unfavorable Required: Compute for the following: Actual cost paid per kilogram Labor efficiency variance
Below is the information about Rexford Corporation’s direct material cost. Standard price of direct material per ounce $35 per ounce Actual quantity of materials purchased 420 ounces Actual quantity of materials used 400 ounces Standard quantity allowed for actual output 360 ounces Direct material price variance $2,100 Unfavorable What is the actual price paid by Rexford to purchase an ounce of direct material? Group of answer choices $31.5 $35 $30 $40
5. Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.90 Actual quantity purchased and used in production 100 Standard quantity for units produced 90 Actual labor rate per hour $15 Standard labor rate per hour $14 Actual hours 200 Standard hours for units produced 190 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Material Price ? ? Material Quantity ? ? Total DM Cost Variance ? ? Labor Rate ? ? Labor Efficiency ? ? Total DL Cost Variance ? ?
Q10 Empty Company maintains no inventories and has the following data pertaining to one of its direct materials in July: Standard quantity of direct materials for the units manufactured (SQ) 31,600 Direct materials purchases—actual cost $ 98,000 Standard price per unit of direct materials (SP) $ 3.00 Direct material efficiency variance—favorable $ 6,100 All materials purchased during the month were issued to production.What was the direct materials price variance for July? Multiple Choice $9,300 unfavorable. $2,900 favorable. $3,200 unfavorable. $9,300 favorable. $3,200 favorable.
In good accounting form, compute for the:1. Price variance2. Efficiency variance3. Materials variance Maricol company uses a standard costing system in connection with the manufacture of their product "x". each unit of the finished product contains 2 yards of a direct material. However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. The standard cost of the direct material is p3 per yard. for the month, the company purchased 100,000 yards of the direct material for p350,000 and used 90,000 yards to produce 40,000 units of material x.
JCB Company has a standard of 15 parts of component A costing P1.50 each. JCB purchased 14,910 units of component A for P22,145. JCB generated a P220 favorable price variance and a P3,735 favorable quantity variance. If there were no changes in the component inventory, how many units of finished product were produced?