Program Outcome: Perform cost accounting preparation, reporting, and analysis tasks# 17a Criteria: calculate variances using standard costsUnit standards for material:3 lbs per unit$6 per lbEquivalent UnitsBeginning Work In ProcessEnding Work In ProcessUnits CompletedActual ResultsNumber of lbs usedTotal material cost200 units400 units6,400 units20,900 lbs123,300Calculate Material Price VarianceNet Material VarianceCalculate Material Quantity VarianceusagepriceAll materials added at the beginningAll materials added at the beginningO favorable0 unfavorableO unfavorableactual @ actual0actual @ standard0actual @ standard0standard @ standard0

Name: Program Outcome: Perform cost accounting preparation, reporting, and
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Description: Program Outcome: Perform cost accounting preparation, reporting, and analysis tasks# 17a Criteria: calculate variances using standard costsUnit standards for material:3 lbs per unit$6 per lbEquivalent UnitsBeginning Work In ProcessEnding Work In Pro

Material price variance is the difference between actual price paid for the materials used and…

Business

Accounting

Program Outcome: Perform cost accounting preparation, reporting, and analysis tasks #17a Criteria: calculate variances using standard costs Unit standards for material: 3 lbs per unit $6 per lb Equivalent Units Beginning Work In Process Ending Work In Process Units Completed 200 units 400 units 6,400 units Actual Results Number of lbs used Total material cost Calculate Material Price Variance Calculate Material Quantity Variance Net Material Variance 20,900 lbs 123,300 usage price All materials added at the beginning All materials added at the beginning O favorable O unfavorable 0 unfavorable actual @ actual 0 actual @ standard 0 actual @ standard 0 standard @ standard

Program Outcome: Perform cost accounting preparation, reporting, and analysis tasks #17a Criteria: calculate variances using standard costs Unit standards for material: 3 lbs per unit $6 per lb Equivalent Units Beginning Work In Process Ending Work In Process Units Completed 200 units 400 units 6,400 units Actual Results Number of lbs used Total material cost Calculate Material Price Variance Calculate Material Quantity Variance Net Material Variance 20,900 lbs 123,300 usage price All materials added at the beginning All materials added at the beginning O favorable O unfavorable 0 unfavorable actual @ actual 0 actual @ standard 0 actual @ standard 0 standard @ standard

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...

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Data table Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed manufacturing overhead costs incurred Fixed manufacturing overhead costs budgeted Denominator level in machine-hours Standard machine-hour allowed per unit of output Units of output Actual machine-hours used Ending work-in-process inventory $687,100 $9 per standard machine-hour $146,500 $141,000 70,500 1.2 64,800 75,500 0
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. @ $3 per lb.) $42 32 Direct labor (2 hrs. @ $16 per hr.) During May the company incurred the following actual costs to produce 8,600 units. Direct materials (124,100 lbs. @ $2.80 per lb.) Direct labor (20,900 hrs. @ $16.10 per hr.). $347,480 336,490 AH = Actual Hours SH= Standard Hours AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) Complete this question by entering your answers in the…
Computing and journalizing standard cost variances McKnight manufactures coffee mugs that it sells to other companies for customizing with their own logos. McKnight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Direct Materials (0.2 lbs. @ $0.25 per Ib.) $ 0.05 Direct Labor (3 minutes @ $0.11 per minute) 0.33 Manufacturing Overhead: Variable (3 minutes @ $0.06 per minute) $ 0.18 Fixed (3 minutes @ $0.15 per minute) 0.45 0.63 Total Cost Per Coffee Mug $ 1.01 Actual cost and production information for July 2020 follow: а. Actual production and sales were 62,500 coffee mugs. b. Actual direct materials usage was 10,000 Ibs. at an actual cost of $0.17 per Ib. Actual direct labor usage of 198,000 minutes at a cost of $25,740. d. Actual overhead cost was $8,500 variable and $32,100 fixed. e. Selling and administrative costs were $110,000. C.