Eric Limited provides the following data for the month of March: Particulars Standard Actual Production 84000 units 80,000 Units Standard raw-material consumption per unit Total Raw material Consumption Cost of Raw Material per kg 3 Kg 252000 kg 250,000 kg $5 $5.10 Total Raw material Cost $1260,000 $12,75000 Compute raw material cost variance, Price variance and Material usage variance.

Q: Consider the following data for Martin Manufacturing during the month of November:…

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

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

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: Materials and Labor Variances At the beginning of the year, Craig Company had the following standard…

A: Given information is: At the beginning of the year, Craig Company had the following standard cost…

Q: Compute for the Labor Efficiency Variance MARIETTA CO. adopted a standard cost system several years…

A: Material price variance = Total material variance - Material usage variance  = -450 - (-2250) =…

Q: Barley, Inc., produces a product and has the following as standard costs per unit for materials and…

A: Actual price=Material usedQuantity=$800,00050,000=$16

Q: BBB Company uses a standard cost system. Information for raw materials for Product RB for the month…

A: SOLUTION : Material purchase price variance : It is the difference between the standard price of the…

Q: raig Company had the following standard

A: Answer1) Price and usage variances for materials. Enter amounts as positive numbers and select…

Q: Suver Corporation has a standard costing system. The following data are available for June: Actual…

A: Material price variance = 2,500 Unfavorable Standard price = $2 Actual quantity = 25,000

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

A: Material variances: Material cost variance is the difference between the actual cost of direct…

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

A: Given that            standard price : $ 14.20            standard quantity per unit of output : 5.4…

Q: Standards established for a particular raw material used by Troop Company are as follows: Standard…

A: Direct Material Quantity Variance = = (SQ − AQ) × SP Where,SQ is the standard quantity allowed,AQ is…

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

A: Lets understand basics, Direct labor usage variance is a variance between the standard labor hour…

Q: Ipad Man Inc. has provided the following standard direct labor cost for its product: Standard…

A: Standard rate of labor = P15 per direct labor hour Actual rate of labor = P36,000 / 1800 = P20 per…

Q: The standard cost of Product B manufactured by Pharrell Company includes 2.4 units of direct…

A: Answer a) Total material variance =Standard  Cost - Actual Cost=(11100 x 2.4 x 5.1) -(27000 x…

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

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

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

A: SOLUTION-   FORMULA- MATERIAL QUANTITY VARIANCE = (STANDARD QUANTITY-ACTUAL QUANTITY) *STANDARD…

Q: The following standards have been established for a raw material used in the production of product…

A: Formulas: Material price variance = (Actual material price per pound - Standard material price per…

Q: The following materials standards have been established for raw material used in the company's sole…

A: Material price variance is calculated using the below given formula: Material Price…

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

A: Material quantity variance = (Actual quantity used - Standard quantity allowed)*Standard rate per…

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

A: In This Numerical has Covered the Concept Of Standard Costing.

Q: The Claus2 Company uses standard costing for the single product the company makes and sells. The…

A: Labor rate variance refers to the concept which evaluates the gap between the actual expenses…

Q: The Swenson Company has a standard costing system. The following data are available for June: Actual…

A: Material price variance is calculated as: = (Actual Price - Standard Price) * Actual Quantity price

Q: Print Works company has collected actual results for the current month as follows: Actual amounts:…

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: Devoto Incorporated has provided the following data concerning one of the products in its standard…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: Sexson Corporation uses a standard cost system. The following information pertains to direct…

A: Standard quantity allowed for actual output  = 6,000 lbs. Actual output = 1,000 units

Q: A company reports the following for one of its products. Direct materials standard (4 pounds @ $2…

A: The difference that arises between the flexible budget and actual results is termed flexible budget…

Q: A company reports the following for one of its products.   Direct materials standard (4 pounds @ $2…

A: Direct materials price variance=SP-AP×AQ Direct materials quantity variance=SQ-AQ×SP Direct…

Q: Question During December, Wards Company’s actual costs incurred in the production of 1,000 units…

A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…

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

A: Solution: material quantity variance = (standard quantity - actual quantity used) * standard price…

Q: Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for…

A: Standard Cost :— It is the predetermined cost that is estimated to be incurred in the future.

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

A:

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: Coronado Company's standard materials cost per unit of output is $8.80 (2.00 pounds x $4.40). During…

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

Q: Simba Company’s standard materials cost per unit of output is $9.40 (2.00 pounds x $4.70). During…

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

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

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: At the beginning of the year, Macquarie, Inc. set the following standards: Direct materials: 2.5…

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

Q: Thompson Company uses a standard cost system for its single product. The following data are…

A: Given the following information: Actual experience for the year:Purchases of raw materials (15,000…

Q: The standard cost card for product Alpha is as follows:       £ Direct material 5kg@ £11.50…

A: Lets understand the basics. Direct material price variance is variance between the rate at which…

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

A: The discrepancy between the actual amount incurred on direct material purchases for a given time and…

Q: Assume the following: The standard price per pound is $2.15. The standard quantity of pounds…

A: The material quantity variance is calculated as difference of standard price of materials minus…

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

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

Q: Thompson Company uses a standard cost system for its single product. The following data are…

A: Please see the next step for the solution

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

A: The direct material value fluctuation is the contrast between the actual value paid to obtain an…

Q: Matt Company uses a standard cost system. Information for raw materials for Product RBI for the…

A: Formula: Material purchase price variance = (Standard material price - Actual material price) x…

Q: The following materials standards have been established for a particular raw material used in the…

A:

Q: Myers Corporation has the following data related to direct materials costs for November: actual…

A: Direct  Material quantity variance = (Actual quantity used - Standard quantity allowed)*Standard…

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.