Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours 5 pounds 2 hours 2 hours Standard Price or Rate $12.10 per pound $17.00 per hour $ 3.00 per hour Standard Cost Direct materials $60.50 Direct labor $34.00 Variable manufacturing overhead $ 6.00 During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. • All of the material that was purchased was used to produce 3,900 units. • 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct materials spending variance?

Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours 5 pounds 2 hours 2 hours Standard Price or Rate $12.10 per pound $17.00 per hour $ 3.00 per hour Standard Cost Direct materials $60.50 Direct labor $34.00 Variable manufacturing overhead $ 6.00 During the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. • All of the material that was purchased was used to produce 3,900 units. • 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct materials spending variance?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 5BE: Standard cost journal entries Bellingham Company produced 15,000 units that require 2.5 standard...

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