Gipple Corporation makes a product that uses a material with the quantity standard of 7.5 grams per unit of output and the price standard of $6.20 per gram. In January the company produced 3,600 units using 25,070 grams of the direct material. During the month the company purchased 27,600 grams of the direct material at $6.30 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice O $2,700 F $2,760 U $2,700 U $2,760 F

Gipple Corporation makes a product that uses a material with the quantity standard of 7.5 grams per unit of output and the price standard of $6.20 per gram. In January the company produced 3,600 units using 25,070 grams of the direct material. During the month the company purchased 27,600 grams of the direct material at $6.30 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice O $2,700 F $2,760 U $2,700 U $2,760 F

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Description: Gipple Corporation makes a product that uses a material with the quantity standard of 7.5 grams per unit of output and the price standard of $6.20 per gram. In January the company produced 3,600 units using 25,070 grams ofthe direct material. During

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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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?
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Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?
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Gipple Corporation makes a product that uses a material with the quantity standard of 9.1 grams per unit of output and the price standard of $7.80 per gram. In January the company produced 5,200 units using 26,670 grams of the direct material. During the month the company purchased 29.200 grams of the direct material at $7.90 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is Multple Cholce $4732 F S2.920 U $4,732 U S2.920 F Prev 8 of 10 Mc Graw Hill 10:54 AM 22 10/5/2021 W 92 F AQI 61 Type here to search DELL Hor PgUp Insert Delete F12 PrtScr F10 F11 F8 F9 FZ
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Casivant Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8 pounds per unit Standard price $4.00 per pound The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for November is: Multiple Choice A. $3,880 F B. $3,686 U C. $3,686 F D. $3,880 U
Casivant Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.8 pounds per unit Standard price $ 4.00 per pound The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is:
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