Bounder Corp. purchased 22,000 pounds of materials in October at a total cost of $35,250. However, only 20,500 pounds were used in production during October. The company had a favorable direct materials price variance of $3,250 and an unfavorable usage variance of $3,675 for October. How many pounds should the company have used for production in October? а. 19,900 роunds b. 22,600 pounds 18,400 pounds d. 24,527 pounds е. 24,100 роunds f. 19,473 pounds g. 23,027 pounds h. None of the above. с.

Bounder Corp. purchased 22,000 pounds of materials in October at a total cost of $35,250. However, only 20,500 pounds were used in production during October. The company had a favorable direct materials price variance of $3,250 and an unfavorable usage variance of $3,675 for October. How many pounds should the company have used for production in October? а. 19,900 роunds b. 22,600 pounds 18,400 pounds d. 24,527 pounds е. 24,100 роunds f. 19,473 pounds g. 23,027 pounds h. None of the above. с.

Name: 7.cost of $35,250. However, only 20,500 pounds were used in productio
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Description: 7.cost of $35,250. However, only 20,500 pounds were used in production during October.The company had a favorable direct materials price variance of $3,250 and anunfavorable usage variance of $3,675 for October. How many pounds should thecompany hav

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10EB: A manufacturer planned to use $45 of variable overhead per unit produced, but in the most recent...

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Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
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?
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?
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.
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.
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