Det Acoma, Inc., has determined a standard direct materials cost per unit of $7.40 (2 feet x $3.70 per foot). Last month, Acoma purchased and used 4,760 feet of direct materials for which it paid $17,136. The company produced and sold 2,190 units during the month. Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) F Direct Materials Price Variance U Direct Materials Quantity Variance U Direct Materials Spending Variance

Question

How would i solve this problem

Det
Acoma, Inc., has determined a standard direct materials cost per unit of $7.40 (2 feet x $3.70 per foot). Last month, Acoma purchased and used 4,760 feet of direct materials for which it
paid $17,136. The company produced and sold 2,190 units during the month.
Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by
selecting "F" for favorable, "U" for unfavorable.)
F
Direct Materials Price Variance
U
Direct Materials Quantity Variance
U
Direct Materials Spending Variance
Expand
Transcribed Image Text

Det Acoma, Inc., has determined a standard direct materials cost per unit of $7.40 (2 feet x $3.70 per foot). Last month, Acoma purchased and used 4,760 feet of direct materials for which it paid $17,136. The company produced and sold 2,190 units during the month. Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) F Direct Materials Price Variance U Direct Materials Quantity Variance U Direct Materials Spending Variance

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Marginal Costing

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at t...

A: Formula to calculate cash flow from sale of equipment:

Q: Stellar Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was...

A: Prepare a schedule to determine the total units available for sale and cost of goods available for s...

Q: Sanchez's Men's Shop deposits all receipts in the bank each evening and makes all payments by check....

A: a. Prepare a bank reconciliation statement.

Q: Number 1 An analysis of the accounts of Williams Company reveals the following manufacturing cost da...

A: (a)Prepare cost of goods manufactured schedule: 

Q: how to do this questions? thanksssss!!

A: Hello, since you have posted a question with multiple sub-parts, we will solve first three subparts ...

Q: The following information is available for the first month of operations of Bahadir Company, a manuf...

A: Cost of goods sold has been calculated by taking the gross profit subtracted from the sales.

Q: Irene uses a calendar-year accounting period and a periodic inventory system. Assume Irene had the f...

A: Effects of given situations is as follows:

Q: The actual variable cost of goods sold for a product was $140 per unit, while the planned variable c...

A: a)Variable cost quantity factor is computed by the following formulaVariable cost quantity factor=(P...

Q: At the end of the current year. Accounts Receivable has a balance of $4,375,000; Allowance for Doubt...

A: Accounts receivable is the sum owed to an organization in lieu of the products or services provided ...

Q: Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving...

A: Compute the gain on sale of investments:

Q: Break-Even Sales Currently, the unit selling price of a product is $390, the unit variable cost is $...

A: Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No ...

Q: Selected financial data for the Micco Community Health Clinic follows for a volume of 120,000 patien...

A: Variable costs: Variable costs are those costs which change in proportion to change in the productio...

Q: Pinned below

A: a. Prepare journal entries in the books of Hip Pants.

Q: Schwer, Inc. issued $500,000 of 10%, 15-year bonds at 95 on July 1, 2012. Interest is payable semian...

A: Bonds may be issued at discount when the interest on the bonds is higher than the market interest ra...

Q: he following information is available for Carter Corporation: Materials inventory decreased $4,000....

A: a.  Compute Finished goods inventory on January 1.

Q: Accounting Question

A: Inventory for Caleres if it would have used FIFO in 2015 = $546,745 + $4,094= $550,839.Inventory for...

Q: Munoz Corporation incurs the following annual fixed costs: Item Cost $ 62,000 Depreciation Officers'...

A: In order to compute the fixed cost per unit, the total annual fixed cost needs to be determined. The...

Q: Income StatementThe revenues and expenses of Sentinel Travel Service for the year ended August 31, 2...

A: Prepare an income statement:

Q: Credit (LO 7.3) Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pa...

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct ta...

Q: Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars...

A: Margin of safety: It is a measure that shows the probability of decrease in the sales level before a...

Q: Assume that a company has decided not to allocate any support department costs to producing departme...

A: Cost allocation means assigns cost to different heads or departments. It is a good tool that can be ...

Q: Equivalent Units of Production The following information concerns production in the Baking Departmen...

A: a. Number of units in work in process inventory at March 31.

Q: Brief Exercise 8-07 Consider these transactions: (Credit account titles are automatically indented ...

A: (a)Prepare journal entry in the books of Blossom Company: 

Q: Entries for Discounted Note PayableA business issued a 90-day note for $36,000 to a creditor on acco...

A: a. Prepare journal entry.

Q: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned ...

A: Click to see the answer

Q: Altira Corporation provides the following information related to its merchandise inventory during th...

A: The system of inventory under which updates in inventory are  done on periodic basis is called as pe...

Q: A physical inventory of Liverpool Company taken at December 31 reveals the following.          Pe...

A: Hence, $324,136 is total amount of cost or market whichever is lower

Q: GIPI collected $36,000 cash in training fees on 1/10, of which $34,000 related to January and $2,000...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: Pottery land Inc. has been manufacturing its own finials for its curtain rods. The company is curren...

A: a. Incremental analysis of make or buy finials:First af all,  lets calculate the curent cost of maki...

Q: 1-2 Please state what financial statement(s) the following accounts go on 1) Net income 2) End of-pe...

A: Financial statements: Financial statements are condensed summary of transactions communicated in the...

Q: Which of the following is not subject to self-employment tax? a. Gain on the sale of real estate hel...

A: Self-employment tax: It is a tax levied on the income generated from self-employment. A tax of 12.4 ...

Q: Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the r...

A: The cost related to an asset which is to be used by the company for a longer period of time is to be...

Q: Does egg-producing chickens go on the balance sheet as inventory or as property, plant, and equipmen...

A: In poultry accounting, egg producing chicken are considered inventory as current assets and not long...

Q: The following expenditures and receipts are related to land, land improvements, and buildings acquir...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for...

A: Under straight line method, the depreciation is computed by subtracting the residual value from the ...

Q: The financial statements are interrelated. (a) What item of financial or operating data appears on b...

A: Financial statements: Financial statements are condensed summary of transactions communicated in the...

Q: Dividing LLC IncomeMartin Farley and Ashley Clark formed a limited liability company with an operati...

A: a. Determine the division of $148,000 net income for the year.

Q: A sales invoice included the following information: merchandise price, $8,000; terms 2/10, n/eom. As...

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price - (Merc...

Q: Direct Labor Variances Tip Top Corp. produces a product that requires 10 standard hours per unit at ...

A: a. Calculate direct labor rate variance.

Q: Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove...

A: Hence, 20,300 units is the breakeven sales  which is calculated by dividing total fixed costs with t...

Q: (assigning accounts receivable) - On April 1, 20017, Rasheed Company assigns $400,000 of its account...

A: Accounts receivable:Accounts receivable refers to the amounts to be received within a short period f...

Q: Merchandise with an invoice price of $10,000 is purchased subject to terms of 2/10, n/30, FOB destin...

A: Formula to Calculate net cost of Merchandise (Paid within the period):Net cost of merchandise = Purc...

Q: Clayborn Company' bank reconciliation as of May 31 is shown below. Bank balance $15,800 Book balance...

A: The only adjusting entry that will be passed is bank service fees for $25 charged by the bank for th...

Q: How do you find the amount of payment to be credited and the balance outstanding when you know the a...

A: Calculate the amount to be credited. The buyer gets a discount of 4%, if the bill is paid within 10 ...

Q: 4. Homework Chapter 10

A: Common stock:  Common stock is the instrument used by the company for raising funds from the general...

Q: Explain how to calculate the after stock dividend to enter on the Balance Sheet. At the beginning of...

A: A Stock Dividend is the payment of dividends in the forms of shares of the company. In cash crunch s...

Q: Accrued business income (except rent) $464,200 Accrued business expenses (except rent) 348,150 R...

A: Net income of a business refers to the total earning of a company after deducting all the expenses i...

Q: Current Attempt in Progress Swifty Corporation sells its product for $50 per unit. During 2019, it p...

A: Definition of Variable Costing:Variable Costing is used in cost and managerial accounting. Under var...

Q: Support Department Cost Allocation—Direct Method Charlie’s Wood Works produces wood products (e.g., ...

A: Cost allocation:The cost allocation refers to the process of allocating the costs associated with th...

Q: 3. Homework Chapter 10

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the liabi...