€1512CHABLONG35XOXO9ADirect materials variancesDATAResources' requirements, standard pounds per un7 Resources' standard price, per pound✓ x ✓ fxXHBThe following data is provided for Bellingham Company:Units producedResources used for production, poundsResources' actual price, per pound1815a. Direct materials price variance16 b. Direct materials quantity variancec. Direct materials cost varianceC2.3$3.5016,40036,500$3.65DUsing formulas and cell references, perform the required analysis, and input your answers into the green cells inthe Amount column. Select the corresponding type of variance in the dropdowns in cells D15:D17. Transfer thenumeric results for the green entry cells (C15:C17) into the appropriate fields in CNOWV2 for grading.AmountEFormulasF KDirect materials variancesBellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.50 per pound. 16,400 units used 36,500pounds, which were purchased at $3.65 per pound.This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in thequestions below.XOpen spreadsheetWhat is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorablevariance as a negative number using a minus sign and an unfavorable variance as a positive number.5,475 VUnfavorableFavorableUnfavorable ✓a. Direct materials price varianceb. Direct materials quantity variancec. Direct materials cost variance$-4,425 XCheck My WorkJhryUnfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit).Cost variance is the difference between the actual and standard total cost.

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Description: €1512CHABLONG35XOXO9ADirect materials variancesDATAResources' requirements, standard pounds per un7 Resources' standard price, per pound✓ x ✓ fxXHBThe following data is provided for Bellingham Company:Units producedResources used for production, pou

Material variance is the difference between the actual cost of direct materials and the expected…

Answered: a. Direct materials price variance b.…

Business

Accounting

a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance Amount Formulas

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All materials used were bought during the current period. A. Compute the material and labor variances. B. comment on the results and possible causes of the variances.
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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.
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Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?