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Q: Consider the following data for Martin Manufacturing during the month of November:…
A: Answer) Calculation of Material Price variance Material price variance = (Standard price per pound…
Q: Bortello Corporation produces high-quality leather boots. The company has a standard cost system and…
A: The cost which is forecasted by the business to estimate the total costs that will be incurred…
Q: Hart Company made 3,000 bookshelves using 22,000 board feet of wood costing $266,200. The company’s…
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one…
A: Introduction: Variance analysis is a quantitative examination of the difference between actual and…
Q: he following information summarizes the standard cost for producing one metal tennis racket frame at…
A: MPV = (Standard Price – Actual Price) x Actual Quantity
Q: Martin, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is1.0…
A: Formula: Direct Materials Cost Variance = ( Actual Cost - Standard Cost ) × Actual Quantity
Q: Acoma, Inc., has determined a standard direct materials cost per unit of $6.80 (2 feet × $3.40 per…
A:
Q: Duval, Inc., budgets direct materials at $1/liter and requires 4 liters per unit of finished…
A: Variance is the result of the amount of expected value and actual results. These results are helpful…
Q: Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC)…
A: Price variance = (Standard price - Actual price) x Actual Qty Quantity variance = (Standard qty -…
Q: Parallel Enterprises has collected the following data on one of its products. During the period the…
A: Direct Material Variance Formula = (SP*AP)× AQ Here SP is the standard price per unit of direct…
Q: Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per…
A: Material price variance is computed when material is purchased. Material price variance is…
Q: A company developed the following per-unit standards for its product: 2 pounds of direct materials…
A: Direct material price variance: It refers to a difference between the actual price that is paid by…
Q: Jackson, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…
A: Variances are the differences between the costs that have been budgeted by an entity relating to…
Q: Longman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…
A: Direct material variance: direct material variance is variance analysis done by the company to know…
Q: Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…
A: Direct materials Price variance = (SP - AP)*AQ = ($9 - $9.25)*1500 = $375 U
Q: Exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…
A: Direct Material price variance = (Actual Material price per pound - Standard Material price per…
Q: Vaughn produces 5-foot USB cables. During the past year, the company purchased 175,000 feet of…
A: Direct Material Quantity Variance = ( SQ-AQ) * SP Where SQ is the standard quantity AQ is the…
Q: A company had established 5 pounds of material j at $2 per pound as the standard for the material in…
A: Direct Material Price variance arises when price actually paid for the material is more or less than…
Q: The Company has collected the following data for one its line of products: Direct materials…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: Fiberworks Company is a manufacturer of fiberglass toy boats. The company has recently implemented a…
A: Direct materials usage variance: This variance shows the difference of standard usage and actual…
Q: Windy City manufactures decorative weather vanes that have a standard materials cost of two pounds…
A: Formulas: Material price variance = (Actual price per pound - Standard price per pound)*Actual…
Q: The united Company produced 2,500 units of the product X by using 4,700 kg of direct materials A out…
A: Direct Materials Price Variance is calculated by: = Actual Quantity Purchased * (Standard Price -…
Q: Perfect Builders makes all sorts of moldings. Its standard quantity of material allowed is 1 foot of…
A: Material price variance = ( Actual price - standard price ) x Actual quantity. Material usage…
Q: Washington WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,000…
A: Direct Material Price Variance: Direct material price variance in the difference between the…
Q: Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC)…
A:
Q: Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The…
A: Solution: CALCULATE MATERIAL VARIANCES : MATERIAL PRICE VARIANCE (STANDARD PRICE - ACTUAL…
Q: Exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…
A: Identify the correct option. Working note: Calculate the standard quantity:
Q: Direct material C 4 kg @ sh. 80 Direct material D 6 kg @ sh. 40 Actual data: Direct material…
A: Material mix variance arises when actual material is not in the ratio of standard quantity mix.…
Q: Queen Industries uses a standard costing system in the manufacturing of its single product. It…
A: Direct labor cost variance refers to the variance in actual cost of labor concerning the budgeted…
Q: Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one…
A: Here Price Variance we will get [ Bud. Price - Actual Price] x Budgeted Qty Produced…
Q: Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per…
A: Material price variance = (Standard price per pound - Actual price per pound)*Actual quantity…
Q: Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard…
A: In Standard costing system, a standard or estimated cost is calculated for each item like direct…
Q: Waterway, Inc. makes high-quality swimsuits. During the year, the company produced 801 suits, using…
A: Direct materials quantity variance also known as material efficiency or usage variance used measure…
Q: Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unitquantity of…
A: Variance refers to the difference of budgeted and actual figures for items of revenues and expense.
Q: Brookman, Inc, is a manufacturer of lead crystal glasses. The standard direct materials quantity is…
A: Direct material cost variance = Actual material cost - Standard material cost Actual material used…
Q: For the raw materials used to make its stoves, Kleslia, SRL has a standard price of $10.92 per gram…
A: Materials price variance = (Standard price x Materials purchased) - Actual cost
Q: Standish Company manufactures consumer products and provided the following information for the month…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: Woodside Company manufactures tables with vinyl tops. The standard material cost for the vinyl used…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using…
A: Material Price Variance = ( Standard Price - Actual Price ) x Actual Quantity Material Quantity…
Q: Boracay Company manufactures desks with vinyl tops. The standard material cost for the vinyl used…
A: Material usage variance = (Actual quantity used - Standard quantity allowed)*Standard rate per…
Q: exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…
A: Direct material price variance = (Standard Price - Actual price) x Actual Quantity = (Standard…
Q: Brookman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Steinberg Company had the following direct materials costs for the manufacturing of product T in…
A: The variance is the difference between the actual data and standard output of the production.
Q: For FISH Company, actual materials cost was $24,800. Standard price for materials was $5.00 per…
A: Given that, actual material cost =$24800 the standard price of materials = $5 per pound (SP) the…
Q: Oxford Co. has a materials standard of 21 pounds per unit of output. Each pound has a standard price…
A: A materials quantity variance compares the actual and expected direct material used in manufacturing…
Q: Home Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per…
A: Material usage variance= (Standard material quantity- Actual material quantity)* standard price…
Q: Myers Corporation has the following data related to direct materials costs for November: actual…
A: Direct Material quantity variance = (Actual quantity used - Standard quantity allowed)*Standard…
Q: Glassica, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…
A: Material efficiency variance = Standard price × [Actual quantity - Standard quantity]
Grace Company manufactures tables with glass tops. The
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- Corolla Manufacturing has a standard cost for steel of $20 per pound for a product that uses 4 pounds of steel. During September, Corolla purchased and used 4,200 pounds of steel to make 1,040 units. They paid $20.75 per pound for the steel. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance for the month of September. What would change if Corolla had made 2,200 units?April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $300,000, and it takes S feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $6,000. A. What is April Industries standard price for one unit of material? B. What was the total number of units of material used to produce the August output? C. What was the direct materials price variance for August?Buenolorl Company produces a well-known cologne. The standard manufacturing cost of the cologne is described by the following standard cost sheet: Management has decided to investigate only those variances that exceed the lesser of 10% of the standard cost for each category or 20,000. During the past quarter, 250,000 four-ounce bottles of cologne were produced. Descriptions of actual activity for the quarter follow: a. A total of 1.35 million ounces of liquids was purchased, mixed, and processed. Evaporation was higher than expected. (No inventories of liquids are maintained.) The price paid per ounce averaged 0.42. b. Exactly 250,000 bottles were used. The price paid for each bottle was 0.048. c. Direct labor hours totaled 48,250, with a total cost of 733,000. Normal production volume for Buenolorl is 250,000 bottles per quarter. The standard overhead rates are computed by using normal volume. All overhead costs are incurred uniformly throughout the year. (Note: Round unit costs to the nearest cent and total amounts to the nearest dollar.) Required: 1. Calculate the upper and lower control limits for materials and labor. 2. Compute the total materials variance, and break it into price and usage variances. Would these variances be investigated? 3. Compute the total labor variance, and break it into rate and efficiency variances. Would these variances be investigated?
- Jameson Company produces paper towels. The company has established the following direct materials and direct labor standards for one case of paper towels: During the first quarter of the year, Jameson produced 45,000 cases of paper towels. The company purchased and used 135,700 pounds of paper pulp at 0.38 per pound. Actual direct labor used was 91,000 hours at 12.10 per hour. Required: 1. Calculate the direct materials price and usage variances. 2. Calculate the direct labor rate and efficiency variances. 3. Prepare the journal entries for the direct materials and direct labor variances. 4. Describe how flexible budgeting variances relate to the direct materials and direct labor variances computed in Requirements 1 and 2.Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Smith Industries bought 15,500 pounds of material in the current period. There was a $250 unfavorable direct materials price variance. A. How much in total did Sitka pay for the 15,500 pounds? B. What is the direct materials quantity variance? C. What is the total direct material cost variance? D. What ii 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance? E. It there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material?At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
- Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established: During December, 78,000 pounds of materials were purchased and used in production. There were 15,000 cases produced, with the following actual prime costs: Required: 1. Compute the materials variances. 2. Compute the labor variances. 3. CONCEPTUAL CONNECTION What are the advantages and disadvantages that can result from the use of a standard costing system?During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced 40,000 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow away. Unit sales were 38,200 scoops. Fixed overhead was applied at 0.75 per unit produced. Fixed overhead was underapplied by 2,900. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the years operations are as follows (on an absorption-costing basis): Required: 1. Calculate the cost of the firms ending inventory under absorption costing. What is the cost of the ending inventory under variable costing? (Round unit costs to five significant digits.) 2. Prepare a variable-costing income statement. Reconcile the difference between the two income figures.USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
- Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.Illinois Company is a medium-sized company that makes dresses. During the month of June, 8,575 dresses were made. All material purchases were used to make the dresses. The company had this information: standard per dress of 6 yards of material at $6.20 per yard. The actual quantity was 52,000 yards at a cost of $325,520. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance.The Whizbang Company makes a special type of toy. Each top takes 6 ounces of a special material that costs $3 per ounce. Whizbang bought 4,000 ounces of the material at a cost of $11,300. They used 3,400 ounces to make 534 toys. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance.
