The standard cost of Product B manufactured by Bramble Company includes 2.30 units of direct materials at $6.70 per unit. During June, 26,800 units of direct materials are purchased at a cost of $6.65 per unit, and 26,800 units of direct materials are used to produce 11,500 units of Product B. Compute the total materials variance and the price and quantity variances. Total materials variance $ Materials price variance 24 Materials quantity variance Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.75 and the quantity purchased and used is 26,700 units. Total materials variance Materials price variance 24 Materials quantity variance

The standard cost of Product B manufactured by Bramble Company includes 2.30 units of direct materials at $6.70 per unit. During June, 26,800 units of direct materials are purchased at a cost of $6.65 per unit, and 26,800 units of direct materials are used to produce 11,500 units of Product B. Compute the total materials variance and the price and quantity variances. Total materials variance $ Materials price variance 24 Materials quantity variance Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.75 and the quantity purchased and used is 26,700 units. Total materials variance Materials price variance 24 Materials quantity variance

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Description: The standard cost of Product B manufactured by Bramble Company includes 2.30 units of direct materials at $6.70 per unit. During June, 26,800 units of direct materials are purchased at a cost of $6.65 per unit, and 26,800 units of direct materials a

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PB: Illinois Company is a medium-sized company that makes dresses. During the month of June, 8,575...

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Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Instructions Determine (A) the standard cost per unit for direct materials and direct labor; (B) the price variance, quantity variance, and total direct materials cost variance; and (C) the rate variance, time variance, and total direct labor cost variance.
Calculation of materials and labor variances Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: The charges to the manufacturing department for November, when 5,000 units were produced, follow: The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 lb were purchased at a price of $2.90 per pound. Required: Calculate the following from standard costs for the data given, using the formulas on pages 421–422 and 424: Materials quantity variance. Materials purchase price variance (at time of purchase). Labor efficiency variance. Labor rate variance. Give some reasons as to why both the materials quantity variance and labor efficiency variance might be unfavorable.
Direct materials and direct labor variance analysis Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Instructions Determine (a) the standard cost per unit for direct materials and direct labor; (h) the price variance, quantity variance, and total direct materials cost variance; and (c) the rate variance, time variance, and total direct labor cost variance.
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): 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. A. What was the direct materials price variance for July? B. What was the direct materials quantity variance for July? C. What is the total direct materials cost variance? D. If Smith Industries used 15,750 pounds to make the baskets, what would be the direct materials quantity variance?
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