MATERIALS MIX VARIANCE
Q: If the materials price variance is P2,400 F and the materials quantity and labor variances are each…
A: Total Materials variance = Materials price variance + Material quantity variances Total…
Q: The material price variance is computed by multiplying the difference between the actual price and…
A: GIVEN Material Price Variance is the difference between the actual cost of Material purchased and…
Q: The total overhead variance is equal to the sum of the controllable variance and the volume…
A: Answer: Total overhead variance is the difference between actual overhead and applied overhead.
Q: need help finding the: - materials price variance & the materials quantity variance - labor rate…
A:
Q: Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do…
A: Standard costing is a method of costing where the costs are budgeted to enhance the efficiency of…
Q: t variances. Select the required formulas, compute the cost variances for direct materials and…
A: Variiances ariise when the actual results differs from standard or budgeted results. There are…
Q: (a) Calculate the material price variance (b) Calculate the material quantity variance (c) Calculate…
A: Material Price Variance =( Standard Price - Actual Price )× Actual Quantity Material Quantity…
Q: Required: a. Determine the standard cost per faucet for direct materials and direct labor. Round the…
A: Formula: 1.Material Quantity Variance= [(Standard Quantity-Actual Quantity)*Standard Cost]…
Q: Requirement 2. Calculate the direct materials cost variance and the direct materials efficiency…
A: The variance is the difference between the standard data and actual production data for the period.
Q: The materials price variance should be computed when materials are purchased. Group of answer…
A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…
Q: The formula for the materials quantity variance is (SQ x AP) – (SQ × SP). O (AQ x SP) – (SQ × SP). O…
A: Introduction: Direct materials Quantity variance is used for the comparing actual and standard…
Q: Give the general formulas for determining cost and efficiency variances.
A: Cost variance: Cost variance shows the difference of standard cost and actual costs. Efficiency…
Q: The sum of the material mix and material yield variances equals the total material variance. the…
A: Standard costing means where standard is set for various cost element and actual cost is then…
Q: e sum of materials yield variance and materials mix variance is? * Materials price variance…
A: Material yield variance is the difference of actual material used and standard quantity estimated to…
Q: 1. Compute the price and efficiency variances of direct materials and direct manufacturing labor.
A:
Q: b. Determine the direct materials price variance, direct materials quantity variance, and total…
A: a) Calculation of Direct material standard cost per unit: Standard number of lb. of brass per faucet…
Q: equired: . Prepare the following variance analyses for both chocolates and the total, based on the…
A: The variance is the difference between actual cost of production and standard cost of production.
Q: There are three input materials A, B and C in a process. The overall material mix variance and the…
A: Given information, 3 input Materials = A, B, C Overall Material Mix Variance is Favourable Mix…
Q: Explain and describe the overhead variance.
A: Variance means when the actual cost does not match with the estimated costs. To compute the…
Q: Under the three-variance method for analyzing factory overhead, whi.ch of the following is used in…
A: A three way variance has Efficiency, volume and spending variance. Generally variance refers to the…
Q: What makes a variance favorable? Give an example of a favorable variance involving materials. What…
A: Variance is the difference in the value of budgeted cost\quantity and the actual cost\quantity. When…
Q: Calculate the material price and usage variance, and the material cost variance for the concrete…
A: Variance analysis is one of the important technique of management accounting, under which actual…
Q: Prepare variance analysis for materials, labor and overhead
A: Variance analysis can be defined as investigation tool which studies the deviation between the…
Q: a. What is the material price usage, material quantity and total material variance D. What is the…
A: Material Quantity Variance-It is the difference between how much material used and expected to be…
Q: What is the variation in the use of materials at actual price and standard materials at standard…
A: "since you have posted more than one questions and not specified which should be solved so we are…
Q: Materials mix variance B. Materials yield variance
A: Material Mix Variance = SP( RSQ - AQ) SP means Standard price RSQ means Revised Standard quantity…
Q: (b) Explain the reasons why Carad Co would be interested in the material price planning variance and…
A: The variations between predicted and actual results of a manufacturing process or other commercial…
Q: Compute overhead variances using a three-variance approach.
A: 1. Budgeted variance 2. Volume variance 3. Overhead variance
Q: Calculate the material quantity variance and the engineering change order (ECO) material variance.
A: Material quantity variance is a category of variance that compares actual quantity and standard…
Q: Calculate the labour price and usage variance, and the labour cost variance for the concrete work.
A: Labour cost variance is the difference between standard cost and actual cost of labour. This can be…
Q: Required: 1. Complete the standard cost card for each product, showing the standard cost of direct…
A: Step 1 Variances is the difference between Budgeted cost and actual cost of factors of Production.
Q: The materials price variance can be computed at what two different points in time? Which point is…
A:
Q: a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c.…
A: Every manufacturing unit has some estimated standard costs for the production based on the past…
Q: total materials variance
A: Total materials variance = (Actual Quantity * Actual Price) - (Standard Quantity allowed for actual…
Q: Multiple Choice The material quantity variance is recorded when overhead is applied to production.…
A: Material Quantity Variance There are several costing techniques which was used to measure the total…
Q: Complete the standard cost variance analysis
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Which of the following is the difference between the actual cost of materials and thematerials cost…
A: Total material variance = Actual cost of materials - Budgeted cost of materials at actual level of…
Q: Which of the following statements is true with respect to the materials price variance? Multiple…
A: Materials price variance = (Standard price - Actual price) x Actual Quantity purchased
Q: Determine the direct materials quantity and direct labor time variances. Round your per unit…
A: To calculate variance direct materials quantity the following formula can be used Statement finding…
Q: Standard Product Cost
A: Standard costing is a cost accounting method to calculate estimated costs based on standards set for…
Q: 1. Calculate the total direct materials variance and total direct labour variance, together with…
A:
Q: in preparing variance analysis for both variable overhead and fixed overhead costs, both include…
A: The answer for the theory question on Spending variances is discussed hereunder :
Q: Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances.
A:
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.
Required:
-
COMPUTE FOR THE MATERIALS MIX VARIANCE
-
COMPUTE FOR THE MATERIALS YIELD VARIANCE
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- Cardiff Inc. manufactures men’s sport shirts for large stores. It produces a single quality shirt in lots of a dozen according to each customer’s order and attaches the store’s label. The standard costs for a dozen shirts include the following: During October, Cardiff worked on three orders for shirts. Job cost records for the month disclose the following: The following information is also available: Cardiff purchased 95,000 yards of materials during October at a cost of $53,200. The materials price variance is recorded when goods are purchased, and all inventories are carried at standard cost. Direct labor incurred amounted to $112,750 during October. According to payroll records, production employees were paid $10.25 per hour. Overhead is applied on the basis of direct labor hours. Factory overhead totaling $22,800 was incurred during October. A total of $288,000 was budgeted for overhead for the year, based on estimated production at the plant’s normal capacity of 48,000 dozen shirts per year. Overhead is 60% fixed and 40% variable at this level of production. There was no work in process at October 1. During October, Lots 30 and 31 were completed, and all materials were issued for Lot 32, which was 80% completed as to labor and overhead. Required: Prepare a schedule computing the October total standard cost of Lots 30, 31, and 32. Prepare a schedule computing the materials price variance for October and indicate whether it is favorable or unfavorable. For each lot produced during October, prepare schedules computing the following (indicate whether favorable or unfavorable): Materials quantity variance in yards. Labor efficiency variance in hours. (Hint: Don’t forget the percentage of completion.) Labor rate variance in dollars. Prepare a schedule computing the total flexible-budget and production-volume overhead variances for October and indicate whether they are favorable or unfavorable. Give some reasons as to why the production-volume variance may be unfavorable and why it is important to correct the situation.Carsen Company produces handcrafted pottery that uses two inputs: materials and labor. During the past quarter, 24,000 units were produced, requiring 96,000 pounds of materials and 48,000 hours of labor. An engineering efficiency study commissioned by the local university revealed that Carsen can produce the same 24,000 units of output using either of the following two combinations of inputs: The cost of materials is 8 per pound; the cost of labor is 12 per hour. Required: 1. Compute the output-input ratio for each input of Combination F1. Does this represent a productivity improvement over the current use of inputs? What is the total dollar value of the improvement? Classify this as a technical or an allocative efficiency improvement. 2. Compute the output-input ratio for each input of Combination F2. Does this represent a productivity improvement over the current use of inputs? Now, compare these ratios to those of Combination F1. What has happened? 3. Compute the cost of producing 24,000 units of output using Combination F1. Compare this cost to the cost using Combination F2. Does moving from Combination F1 to Combination F2 represent a productivity improvement? Explain.Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio and Maslimpio. Pocolimpio uses two quarts of the chemical for every unit produced, and Maslimpio uses five quarts. Currently, Taylor has 6,000 quarts of the material in inventory. All of the material is imported. For the coming year, Taylor plans to import 6,000 quarts to produce 1,000 units of Pocolimpio and 2,000 units of Maslimpio. The detail of each products unit contribution margin is as follows: Taylor Company has received word that the source of the material has been shut down by embargo. Consequently, the company will not be able to import the 6,000 quarts it planned to use in the coming years production. There is no other source of the material. Required: 1. Compute the total contribution margin that the company would earn if it could import the 6,000 quarts of the material. 2. Determine the optimal usage of the companys inventory of 6,000 quarts of the material. Compute the total contribution margin for the product mix that you recommend. 3. Assume that Pocolimpio uses three direct labor hours for every unit produced and that Maslimpio uses two hours. A total of 6,000 direct labor hours is available for the coming year. a. Formulate the linear programming problem faced by Taylor Company. To do so, you must derive mathematical expressions for the objective function and for the materials and labor constraints. b. Solve the linear programming problem using the graphical approach. c. Compute the total contribution margin produced by the optimal mix.
- Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippys financial statements for the year ended September 30, management has asked you to review some computations made by Zippys cost accountant. Your working papers disclose the following about the companys operations: Standard costs per drum of product manufactured: Materials: Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of 1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of 94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of 816,480. Factory overhead: 768,000. Required: Calculate the following for September, using the formulas on pages 421422 and 424 (Round unit costs to the nearest whole cent and compute the materials variances for both Surge and for the drums.): 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.Jameson Company produces paper towels. The company has established the following direct materials and direct labor standards for one case of paper towels: During the first quarter of the year, Jameson produced 45,000 cases of paper towels. The company purchased and used 135,700 pounds of paper pulp at 0.38 per pound. Actual direct labor used was 91,000 hours at 12.10 per hour. Required: 1. Calculate the direct materials price and usage variances. 2. Calculate the direct labor rate and efficiency variances. 3. Prepare the journal entries for the direct materials and direct labor variances. 4. Describe how flexible budgeting variances relate to the direct materials and direct labor variances computed in Requirements 1 and 2.
- The Silver Star Bicycle Company will manufacture both mens and womens models for its Easy-Pedal bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 mens and 125 womens models to be shipped during the first month and 200 mens and 150 womens models to be shipped during the second month. Additional data are as follows: Last month, the company used a total of 1,000 hours of labor. The companys labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. (Hint: Define variables for production and inventory held in each period for each product. Then use a constraint to define the relationship between these: inventory from end of previous period + produced this period demand this period = inventory at end of this period.) a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained and what are the monthly labor requirements? b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? How much will the cost increase? What would you recommend?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?MARINA Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @2.4 lb, P50/lbs; Material B @6 lb, P22/lbs and Material C @1.6 lbs, P15/lb. During the month of August, 25,000 cases were produced from an input of: Material Pounds Cost/lb A 63,700 P49.00 B 125,200 20.50 C 48,100 16.00 Required: COMPUTE FOR THE MATERIALS MIX VARIANCE COMPUTE FOR THE MATERIALS YIELD VARIANCE
- Sarsi Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb, P50/lbs; Material B @ 6 lb, P22/lbs and Material C @ 1.6 lbs, P15/lb. During the month of August, 25,000 cases were produced from an input of: Material Pounds Cost/lb A 63,700 49 B 125,200 20.50 C 48,100 16 a. COMPUTE FOR THE MATERIALS MIX VARIANCE b. COMPUTE FOR THE MATERIALS YIELD VARIANCEMARINA Bottlers Inc, a leading softdrinks company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb, P50/Ibs; Material B @ 6 lb, P22/lbs and Material C @ 1.6 Ibs, P15/lb. During the month of August, 25,000 cases were produced from an input of: Material Pounds Cost/Lb A 63,700 49.00 B 125,200 20.50 C 48,100 16.00 REQUIREMENTS: PLEASE SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM THANK YOU! 1) Compute for the Materials Mix Variance2) Compute for the Materials Yield Variancemarina bottlers in, a leading softdrinks company is producing their bottle requirements. for eachcase of 24 eight-ounce bottles, the company prescribed the following standard product mix: Material A @ 2.4 lb , P50/lbs; Material B @ 6lb, P22/lbs and Material C @1.6 lbs, P15/lb. During the month of August, 25,000 cases were produced from an output of: Material Pound cost/lb A 63,700 P49.00 B 125,200 20.50 C 48,100 16.00 1. COMPUTE FOR THE MATERIALS MIX VARIANCE 2. COMPUTE FOR THE MATERIALS YIELD VARIANCE