Direct materials variances Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 580 tablets during December. However, due to LCD defects, the company actually used 600 LCD displays during December. Each display has a standard cost of $15.00. Six hundred LCD displays were purchased for December production at a cost of $8,550. Determine the price variance, quantity variance, and total direct materials cost variance for December.

BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
Chapter 22, Problem 22.5EX
Textbook Problem

Direct materials variances

Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 580 tablets during December. However, due to LCD defects, the company actually used 600 LCD displays during December. Each display has a standard cost of $15.00. Six hundred LCD displays were purchased for December production at a cost of $8,550.

Determine the price variance, quantity variance, and total direct materials cost variance for December.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 22 Solutions

Financial & Managerial Accounting
Ch. 22 - Direct materials variances Bellingham Company...Ch. 22 - Direct labor variances Bellingham (Company...Ch. 22 - Factory overhead controllable variance Bellingham...Ch. 22 - Factory overhead volume variance Bellingham...Ch. 22 - Standard cost journal entries Bellingham Company...Ch. 22 - Income statement with variances Prepare an income...Ch. 22 - Activity inputs and outputs The following are...Ch. 22 - Standard direct materials cost per unit Roanoke...Ch. 22 - Standard product cost Sana Rosa Furniture Company...Ch. 22 - Budget performance report Genie in a Bottle...Ch. 22 - Direct materials variances The following data...Ch. 22 - Direct materials variances Silicone Engine Inc....Ch. 22 - Standard direct materials cost per unit from...Ch. 22 - Standard product cost, direct materials variance...Ch. 22 - Direct labor variances The following data relate...Ch. 22 - Direct labor variances La Batre Bicycle Company...Ch. 22 - Direct labor variances Greeson Clothes Company...Ch. 22 - Direct labor variances for a service company...Ch. 22 - Direct materials and direct labor variances At the...Ch. 22 - Flexible overhead budget Leno Manufacturing...Ch. 22 - Flexible overhead budget Wiki Wiki Company has...Ch. 22 - Factory overhead cost variances The following data...Ch. 22 - Factory overhead cost variances Blumen Textiles...Ch. 22 - Factory overhead variance corrections The data...Ch. 22 - Factory overhead cost variance report Tannin...Ch. 22 - Recording standards in accounts Cioffi...Ch. 22 - Recording standards in accounts "The Assembly...Ch. 22 - Income statement indicating standard cost...Ch. 22 - Nonfinancial performance measures Diamond Inc. is...Ch. 22 - Nonfinancial performance measures Alpha University...Ch. 22 - Direct materials and direct labor variance...Ch. 22 - Flexible budgeting and variance analysis I Love My...Ch. 22 - Direct materials, direct labor, and factory...Ch. 22 - Factory overhead cost variance report Tiger...Ch. 22 - Standards for nonmanufacturing expenses Code Head...Ch. 22 - Direct materials and direct labor variance...Ch. 22 - Flexible budgeting and variance analysis I'm...Ch. 22 - Direct materials, direct labor, and factory...Ch. 22 - Factory overhead cost variance report Feeling...Ch. 22 - Standards for nonmanufacturing expenses for a...Ch. 22 - Genuine Spice Inc. began operations on January 1...Ch. 22 - Admissions time variance Valley Hospital began...Ch. 22 - United States Postal Service: Mail sorting time...Ch. 22 - Direct labor time variance Maywood City Police...Ch. 22 - Ethics in Action Dash Riprock is a cost analyst...Ch. 22 - Communication The senior management of Tungston...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Should an economic model describe reality exactly?

Essentials of Economics (MindTap Course List)

The probability distribution of a less risky expected return is more peaked than that of a riskier return. What...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)