During August, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was an unfavorable usage variance of $18,750 for August, the actual quantity of materials used must be   106,250 pounds. 23,438 pounds. 93,750 pounds. 31,875 pounds.

Q: Watson Company manufactures a product with a standard direct labor cost of three hours at $20.00 per…

A: The variance is the difference between the actual data and standard output of the production.

Q: The standards for direct materials in making a certain product are 20 pounds at $0.75 per pound.…

A:

Q: Lewis Company's standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of…

A: Total Labor Variance =  ( AH * AR - SR * SH )   Labor Price Variance =  ( SR - AR ) * AH…

Q: A review of Sunshine’s accounting records at the end of the period disclosed a material usage…

A: Standard quantity = 11,000 units x 5 gallons = 55,000 gallons   Standard price = $0.3   Actual…

Q: The standard to manufacture a given electronic component is 10 transistors at $75 per transistor.…

A: Answer) Calculation of Material Price variance Material price variance = (Standard price per…

Q: The following materials standards have been established for a particular product: Standard quantity…

A: We know that, Material Price variance = (Standard price - actual price) * Actual quantity purchased…

Q: The standard cost of Product DD is 4 hours of labor at a rate of $12.00 per hour. During the month…

A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked…

Q: Courington Detailing's cost formula for its materials and supplies is $2,010 per month plus $6 per…

A: Standard materials and supplies  cost = $2,010 per month + (Actual no. of vehicle x $6 per vehicle)…

Q: During April, 80,000 units of product were produced. The standard quantity of material allowed per…

A: Solution: materials usage variance = (standard quantity - actual quantity used) * Standard price…

Q: Tugwell Inc. budgeted​ 10,700 pounds of direct materials costing​ $23.50 per pound to make​ 5,100…

A: Given, Actual quantity = 11,000 pounds Standard quantity = 10,700 pounds Standard price = $23.50

Q: Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the…

A: Material purchase price variance means when there is a difference between actual cost of material…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $30,800 per month plus $62 per…

A: The activity variance for manufacturing overhead is calculated as difference between flexible budget…

Q: Jaw Titan Company established a standard direct material cost of Php30 per finished unit for its…

A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47…

A: An activity variance would seem to be the gap between a revenue or expenditure unit within a…

Q: The standards for product V28 call for 9.1 pounds of a raw material that costs $18.00 per pound.…

A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: The standard cost of labor for the David Company's product is 2 hours of labor for each unit of…

A: Labor rate variance is computed by multiplying the actual quantity with the difference of standard…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per…

A: Formulas; Budgeted Manufacturing Overhead = Manufacturing overhead + (Rate per Machine hours x…

Q: A company developed the following per-unit standards for its product: 2 pounds of direct materials…

A: Direct material price variance = (Standard price per unit - Actual price per unit) * Actual quantity…

Q: During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of direct…

A: Answer) Calculation of Material Quantity variance Material Quantity variance = (Standard quantity of…

Q: At the beginning of the year, Craig Company had the following standard cost sheet for one of its…

A: Solution:- 1)Calculation of  labor rate variance as follows under:-  Labor rate variance = (…

Q: The per-unit standards for direct materials are 2 pounds at $5 per pound. Last month, 10400 pounds…

A: Given that,  per-unit standards for direct materials are 2 pounds at $5 per pound 10400 pounds of…

Q: The following information is available for Anuounyam Manufacturing Company for June when the company…

A: Direct Labor Rate Variance: The direct labor rate variance is a measure to determine the variation…

Q: Compute price and usage variances for materials.

A: Ans.(1) Material price variance = (Actual Price - Standard Price) x Actual Quantity Actual Price =…

Q: Exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…

A: Identify the correct option. Working note: Calculate the standard quantity:

Q: The standard cost card for a product indicates that one unit of the product requires 8 kilograms of…

A: Material quantity variance is the variance between the standard material estimated and the actual…

Q: During April, 80,000 units were produced. The standard quantity of material allowed per unit was 2…

A: The correct option is  161000 pounds

Q: The following describes production activities of Mercer Manufacturing for the year. Actual direct…

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: Williams Manufacturing Company has established the following materials standards for a particular…

A: Material quantity variance refers to the variance in the cost of material due to the difference in…

Q: In September, Bubbles Company produced 1,000 units of product. 2,080 units of raw materials were…

A: Direct labor rate variance is the difference between the standard rate and actual rate for actual…

Q: During the month of April 20X1 Winston Ltd. produce 6,700 dodgits. The cost of the materials in…

A:

Q: 6,000 units. During May, Cheshire produced 5,500 units. The budgeted fixed overhead is $60,000 and…

A: (3600 hours /6000 units )*5500 units = 3300  Direct labour  hours Budgeted Fixed overhead is $60,000…

Q: standard direct labour cost of Product Z is as follows: Four hours of grade B labour at £3 per hour…

A: The direct labor (DL) variance is that the difference between the total actual direct labor cost and…

Q: Three hours are required to produce one unit of product. The company budgeted a $14 per hour wage…

A: In accounting labor variance is an important type of cost variance. Labor variance focuses…

Q: The standards for direct materials in making a certain product are 20 pounds at $0.75 per pound.…

A: Material quantity variance shows difference between the actual amount of direct material used and…

Q: The Russell Company provides the following standard cost data per unit of product:           Direct…

A: Direct material usage variance helps to determine the difference between the standard quantity of…

Q: During December, 6,000 pounds of raw materials were purchased at a cost of $16 per pound. If there…

A: Actual cost incurred = 6,000 pounds x $16 = $96,000   Standard cost = Actual cost - Unfavorable…

Q: Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using…

A: Material Price Variance = ( Standard Price - Actual Price ) x Actual Quantity Material Quantity…

Q: The following labor standards have been established for a particular product:     Standard…

A: Labor Rate Variance:-It means variance which occurs when there is a difference between the actual…

Q: The standard cost for the David Company's product is 5 pounds of materials for each unit of product…

A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…

A: Direct material price variance = (Standard Price - Actual price) x Actual Quantity  = (Standard…

Q: Solly Corporation produces a product for national distribution. Standards for the product are: •…

A: Material Quantity Variance =  Standard price * ( Actual quantity - Standard quantity )

Q: Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the…

A: Spending variance: = Actual results - Flexible budget

Q: Oxford Co. has a materials standard of 21 pounds per unit of output. Each pound has a standard price…

A: A materials quantity variance compares the actual and expected direct material used in manufacturing…

Q: Chhom Corporation makes a product whose direct labor standards are 0.8 hours per unit and $31 per…

A: Labor efficiency variance occurs due to the difference between the actual hours used and the…

Q: Sharp Company manufactures a product for which the following standards have been set: Standard…

A: 1a. Material quantity variance = $2250 U(SQ - AQ) x SP = -$2250(2350 x 3 - AQ) x $5 = -$2250Actual…

Q: During March, the company purchased direct materials at a cost of $45,210, all of which were used in…

A: 1.a Compute actual cost per foot: Actual cost per foot = Actual cost / Actual quantity Actual cost…

Q: During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per…

A: Variances are the differences between the standard and actual costs of direct material, direct labor…

Q: Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the…

A: Given the following information: Standard direct labor hour per unit: 3 hours Standard labor rate:…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.