Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Direct materials Direct labor Total prime cost Standard Quantity 5 pounds 1.25 hours ● Variance Material Price x Material Quantity Standard Price NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F" (for Favorable) or "U" (for Unfavorable) - capital letter and no quotes. Total DM Cost Variance $2.60 per pound $12.00 per hour Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. Complete the following table of variances and their conditions: = Standard Cost $18.00 $15.00 $33.00 Variance Amount Favorable (F) or Unfavorable (U) 10
Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Direct materials Direct labor Total prime cost Standard Quantity 5 pounds 1.25 hours ● Variance Material Price x Material Quantity Standard Price NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F" (for Favorable) or "U" (for Unfavorable) - capital letter and no quotes. Total DM Cost Variance $2.60 per pound $12.00 per hour Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. Complete the following table of variances and their conditions: = Standard Cost $18.00 $15.00 $33.00 Variance Amount Favorable (F) or Unfavorable (U) 10
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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