reported for the production of l100,000 toy boats:Direct material variances-solving for price and usage variancesrecently implemented a standard cost system and has designed the system to isolateFiberworks Company is a manufacturer of fiberglass toy boats. The company hasFue ly implemented a standard cost system and has designed the system to isolatesiances as soon as possible. During the month of May, the following results werenorted for the production of 100,000 toy boats:Direct materials (fiberglass) purchased ... . .Direct materials issued into production.200,000 pounds180,000 poundsStandard pounds allowed per boat1.75 poundsStandard price per pound....Cost of fiberglass purchased ..$7.00$1,420,000..Required:a. Calculate the actual cost per pound of fiberglass purchased during May.b. Calculate the direct materials purchase price variance for May.C. Calculate the direct materials usage variance for May.d. Comment on calculating the material price variance based on pounds purchasedrather than pounds issued into production.

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Description: reported for the production of l100,000 toy boats:Direct material variances-solving for price and usage variancesrecently implemented a standard cost system and has designed the system to isolateFiberworks Company is a manufacturer of fiberglass toy

Standard cost system:- Standard Cost System (SCS) is a system used by manufacturers to have a…

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Required: a. Calculate the actual cost per pound of fiberglass purchased during May. b. Calculate the direct materials purchase price variance for May. C. Calculate the direct materials usage variance for May. 1on pounds pu

Required: a. Calculate the actual cost per pound of fiberglass purchased during May. b. Calculate the direct materials purchase price variance for May. C. Calculate the direct materials usage variance for May. 1on pounds pu

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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