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ABC Company began operations on September 1, 2022. For its first month of operations, ABC Company set the following standards for each unit of its single product: direct materials direct labor variable overhead standard quantity/hours 4 pounds 8 hours 8 hours standard price/rate $6.25 per pound $14.00 per hour $11.30 per hour ABC Company reported the following information for September: 1. 28,000 pounds of direct materials were purchased at a cost of $7.10 per pound. 2. 56,000 direct labor hours were worked at a total cost of $852,440. 3. The variable overhead cost for the month totaled $620,000. 4. 6,800 units were produced. At September 30, ABC Company had 4, 300 pounds of direct materials on hand. calculate the direct material quantity variance for September. If the variance is favorable, place a minus sign in front of your answer (1.e., -5000). If the variance is unfavorable, simply enter your answer as a number (1.e., 5000).

ABC Company began operations on September 1, 2022. For its first month of operations, ABC Company set the following standards for each unit of its single product: direct materials direct labor variable overhead standard quantity/hours 4 pounds 8 hours 8 hours standard price/rate $6.25 per pound $14.00 per hour $11.30 per hour ABC Company reported the following information for September: 1. 28,000 pounds of direct materials were purchased at a cost of $7.10 per pound. 2. 56,000 direct labor hours were worked at a total cost of $852,440. 3. The variable overhead cost for the month totaled $620,000. 4. 6,800 units were produced. At September 30, ABC Company had 4, 300 pounds of direct materials on hand. calculate the direct material quantity variance for September. If the variance is favorable, place a minus sign in front of your answer (1.e., -5000). If the variance is unfavorable, simply enter your answer as a number (1.e., 5000).

Cornerstones of Cost Management (Cornerstones Series)
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 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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ABC Company began operations on September 1, 2022. For its first month of operations, ABC Company set the following standards for each unit of its single product: standard price/rate $6.25 per pound $14.00 per hour $11.30 per hour ABC Company reported the following information for September: 1. 28,000 pounds of direct materials were purchased at a cost of $7.10 per pound. direct materials direct labor variable overhead 2. 56,000 direct labor hours were worked at a total cost of $852, 440. The variable overhead cost for the month totaled $620,000. 6,800 units were produced, At September 30, ABC Company had 4,300 pounds of direct materials on hand. 3. standard quantity/hours 4 pounds 8 hours 8 hours 5. calculate the direct material quantity variance for September. If the variance is favorable, place a minus sign in front of your answer (1.e., -5000), If the variance is unfavorable, simply enter your answer as a number (1.e., 5000).
Transcribed Image Text:ABC Company began operations on September 1, 2022. For its first month of operations, ABC Company set the following standards for each unit of its single product: standard price/rate $6.25 per pound $14.00 per hour $11.30 per hour ABC Company reported the following information for September: 1. 28,000 pounds of direct materials were purchased at a cost of $7.10 per pound. direct materials direct labor variable overhead 2. 56,000 direct labor hours were worked at a total cost of $852, 440. The variable overhead cost for the month totaled $620,000. 6,800 units were produced, At September 30, ABC Company had 4,300 pounds of direct materials on hand. 3. standard quantity/hours 4 pounds 8 hours 8 hours 5. calculate the direct material quantity variance for September. If the variance is favorable, place a minus sign in front of your answer (1.e., -5000), If the variance is unfavorable, simply enter your answer as a number (1.e., 5000).
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