Swifty WaterWorks manufactures snorkel gear. During the past month, Washington purchased 3,400 pounds of plastic to use in its dive masks, at a cost of $7,000. The standard price for the plastic is $1.90 per pound. The company actually used 3,300 pounds of the plastic to produce 18,000 dive masks. Calculate Swifty's direct materials price variance for the month. (Round intermediate calculations to 5 decimal places, eg. 1.24638 and final answer to O decimal places, e.g. 5,275.) -524 Unfavorable Direct material price variance %24

Swifty WaterWorks manufactures snorkel gear. During the past month, Washington purchased 3,400 pounds of plastic to use in its dive masks, at a cost of $7,000. The standard price for the plastic is $1.90 per pound. The company actually used 3,300 pounds of the plastic to produce 18,000 dive masks. Calculate Swifty's direct materials price variance for the month. (Round intermediate calculations to 5 decimal places, eg. 1.24638 and final answer to O decimal places, e.g. 5,275.) -524 Unfavorable Direct material price variance %24

Name: Chapter 6 Question 11I know the answer is also not -6,792 Swifty Water
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Description: Chapter 6 Question 11I know the answer is also not -6,792 Swifty WaterWorks manufactures snorkel gear. During the past month, Washington purchased 3,400 pounds of plastic to use in itsdive masks, at a cost of $7,000. The standard price for the plasti

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 6PB: Corolla Manufacturing has a standard cost for steel of $20 per pound for a product that uses 4...

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Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?
The production cost for a waterproof phone case is $7 per unit and fixed costs are $23,000 per month. How much is the favorable or unfavorable variance If 5,500 units were produced for a total of $61,000?
Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are 6,000, and variable costs are 12,000. Data for two months follow: For each month, make a single journal entry to charge overhead to Work in Process, to close Factory Overhead, and to record variances. Indicate the types of variances and state whether each is favorable or unfavorable. (Hint: You must first compute the flexible-budget and production-volume variances.)
April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $300,000, and it takes S feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $6,000. A. What is April Industries standard price for one unit of material? B. What was the total number of units of material used to produce the August output? C. What was the direct materials price variance for August?
Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
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.
USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
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.
The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of $97,000?