Peking Palace Company reported the following: Standard quantity per unit 3 Ibs. Standard price per pound $2.75 Actual pounds used 15,000 lbs. Actual price per pound $2.90 Number of units produced 5,070 What is the total direct materials cost variance? O a. $(1,672.50) favorable O b. $1,672.50 unfavorable O c. $2,859.00 unfavorable O d. $(2,859.00) favorable

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: Actual quantity of direct materials purchased and used 12,000 kg Actual cost of direct materials…

A: Step 1 Amount of materials that should  have been used to manufacture units of output during a…

Q: (Material and Labour Variances). Following have set to manufacture a product by a company : been…

A:

Q: Each of the following independent situations relates to direct labor. Fill in the blanks. A B C D…

A: A variance can be determined when there is a difference between a budgeted value and the actual…

Q: Goodard Inc. planned to use $154 of material per unit but actually used $148 of material per unit,…

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

Q: Formidable Company collected the following information: Standard costs per unit:   Variable…

A: Variance is the difference between budgeted and actual costs or production, on the basis of which…

Q: 3. Ayers Company reports the following standards for direct materials for the year: Standard cost…

A: The practice of reviewing your project's financial performance is known as cost variance. The cost…

Q: Cost standards for one unit of product no. C77: Direct material 3 pounds at $2.50 per pound $7.50…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The standard costs and actual costs for direct materials for the manufacture of 2,800 actual units…

A: Direct material variances:The difference between the actual material cost per unit and the standard…

Q: Use the information provided to answer the questions. Actual price paid per pound of material $14.00…

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

Q: Cost standards for one unit of product no. C77: Direct material 3 pounds at $2.50 per pound $7.50…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The following data relate to direct materials costs for February: Materials cost per yard: standard,…

A: Introduction: Direct materials are materials and supplies available for consumption during the…

Q: Possible causes for price and efficiency variances. You have been invited to interview for an…

A: 1.

Q: Information on GB Co.'s direct material costs for May follows: Actual quantity of direct materials…

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

Q: A company reports the following for one of its products. Direct materials standard (3 pounds e $2…

A: Calculation of Direct material price Variance:: Actual quantity*(Standard price------Actual…

Q: The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units…

A: Formula to calculate direct material quantity variance:Direct material quantity variance = (Standard…

Q: A company reports the following for one of its products. Direct materials standard (4 pounds @ $3…

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

Q: The Porter Company has a standard cost system. In July the company purchased and used 22,500 grams…

A: Actual Quantity = 22500 grams Actual Price = $52875 / 22500 = $2.35 per gram Standard Quantity =…

Q: The standard direct material cost per unit for a product is calculated as follows: 10.5 liters at…

A: The variances are difference between actual usage or cost and standard usage or cost. The variances…

Q: Smith Siding, LLC  reported the following standards for direct materials for last year: Standard…

A: Given,   Standard cost of material = $ 4.75 per lbs Standard material per unit = 8.50 lbs   Actual…

Q: A company reports the following for one of its products.   Direct materials standard (4 pounds @ $3…

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

Q: Calculate direct materials and direct labour variances. E12.31 (LO 2, 3) Jay Levitt Company budgeted…

A: Actual price per unit = $31,2006,500 kg = $4.8 per kg Standard quantity for actual output = 2,750…

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: Oxford Co. has a materials standard of 2.1 pounds per unit of output. Each pound has a standard…

A:

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

A: Solution...   Standard quantity  = Actual output * standard quantity per unit  = 60,000 units * 4…

Q: A company purchased 6,850 kgs of material at a total cost of $21,920. The material price variance…

A: We have the following information: Purchased 6,850 kgs of material at a total cost of $21,920 The…

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: For the current period, Kay Company's manufacturing operations show a $6,500 unfavorable direct…

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

Q: Quicksand Company has set the following standards for one unit of product: Direct material…

A: Calculation of Material Quantity variance Material Usage variance = (Standard quantity of material…

Q: Titan Company has a materials price standard of $4.00 per pound. Twelve thousand pounds of materials…

A: This approach to material variance is frequently used by auditors. When a variance exceeds a certain…

Q: Calculate the direct materials price variance.

A: Direct material variances:   The difference between the actual material cost per unit and the…

Q: Use the information provided to answer the questions. Actual price paid per pound of material…

A: A)  Actual Quantity 13,150 Actual Rate $14.00 Actual Quantity Cost $184,100     Price…

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: Zeta Ltd has the following details: Material purchased 24,000 kg = 1,05,600 Material consumed=…

A: Standard costing is a costing method where it measures the performance of an activity by making…

Q: A company reports the following for one of its products. $ 40 per unit 80,000 units $ 3,232,000…

A: Standard cost of direct material allowed = Actual unts produced x standard direct material cost per…

Q: Information concerning Johnston Co.'s direct materials costs is as follows:             Standard…

A: Solution: Material purchase price variance = (SP - AP) * AQ Purchased

Q: Cox Company's direct material costs for the month of January were as follows: Actual quantity…

A: Introduction:- The following formula used to calculate Material quantity variance as follows:-…

Q: Simba Company's standard materials cost per unit of output is $9.00 (2.00 pounds x $4.50). During…

A: Formula: Materials Quantity variance = ( AQ - SQ ) x SP

Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…

A: Note: As per the Policy , we can only answer up to 3 sub-parts, we’ll answer the first 3. Please…

Q: Use the information provided to answer the questions. Actual price paid per pound of material $15.00…

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

Q: Acme Inc. has the following information available: Actual Price paid for material  $1.00 Standard…

A: Material Price Variances : Actual Quantity Usage (Standard price - Actual Price)  = 100 ( $ 0.90 - $…

Q: A manufactured product has the following information for June.     Standard Quantity and Cost…

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

Q: The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units…

A: Formula to calcualte Direct material price variance:Direct material price variance = (Standard price…

Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…

A: The Numerical has Covered the concept of Variance Analysis. Material price variance The Material…

Q: Assume the following information (the quantity of materials purchased = the quantity used):…

A: Variances are difference between actual cost and standard cost. If actual cost is higher than…

Q: a. Gallon units produced: 24,000. b. Ounces of materials purchased and used: 2,880,000 ounces at…

A: Material Price Variance: It measures variance arises in the material cost due to difference in…

Q: A company reports the following for one of its products. Direct materials standard (10 pounds @ $9…

A: Variances shows the variation between the costs estimated and the actual costs.

Q: Material cost variance Material price variance and GMaterial usage variance. Quantity of materials…

A: Actual quantity of material purchased = 3,000 units Value of material purchased = Rs.9,000 Actual…

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.