Direct material variances: The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows: Direct materials price variance. Direct materials quantity variance. The direct materials price variance.

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 23.1APE

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

Direct materials price variance.

Direct materials quantity variance.

The direct materials price variance.

(b)

To determine

The direct materials quantity variance.

(c)

To determine

The total direct materials cost variance.

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Direct Materials Variances 1.-Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price is $8.5 per pound. If 2,400 units used 32,300 pounds, which were purchased at $8.93 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $fill in the blank 1 Favorable/Unfavorable b. Direct materials quantity variance $fill in the blank 3 Favorable/Unfavorable c. Direct materials cost variance $fill in the blank 5 Favorable/Unfavorable

Direct Materials Variances Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per pound. If 14,000 units required 48,000 pounds, which were purchased at $5.40 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ Unfavorable b. Direct materials quantity variance $ Favorable c. Total direct materials cost variance $ Unfavorable

Direct Materials Variances Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. If 1,000 units required 4,500 pounds, which were purchased at $3.00 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance b. Direct materials quantity variance C. Total direct materials cost variance

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 23.1APE

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

Direct materials price variance.

Direct materials quantity variance.

The direct materials price variance.

(b)

To determine

The direct materials quantity variance.

(c)

To determine

The total direct materials cost variance.

Expert Solution & Answer

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 23.1APE

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

Direct materials price variance.

Direct materials quantity variance.

The direct materials price variance.

(b)

To determine

The direct materials quantity variance.

(c)

To determine

The total direct materials cost variance.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 23.1APE

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

Direct materials price variance.

Direct materials quantity variance.

The direct materials price variance.

(b)

To determine

The direct materials quantity variance.

(c)

To determine

The total direct materials cost variance.

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 23.1APE

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

Direct materials price variance.

Direct materials quantity variance.

The direct materials price variance.

(b)

To determine

The direct materials quantity variance.

(c)

To determine

The total direct materials cost variance.

Answer 6

Chapter 23, Problem 23.1APE

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

Direct materials price variance.

Direct materials quantity variance.

The direct materials price variance.

Answer 7

Chapter 23, Problem 23.1APE

(a)

To determine

Direct material variances:

The difference between the actual material cost per unit and the standard material cost per unit for the direct material purchased is known as direct material cost variance. The direct material variance can be classified as follows:

Direct materials price variance.

Direct materials quantity variance.

The direct materials price variance.

Answer 8

(b)

To determine

The direct materials quantity variance.

Answer 9

(b)

To determine

The direct materials quantity variance.

Answer 10

(c)

To determine

The total direct materials cost variance.

Answer 11

(c)

To determine

The total direct materials cost variance.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 23 - What are the basic objectives in the use of...Ch. 23 - What is meant by reporting by the principle of...Ch. 23 - What are the two variances between the actual cost...Ch. 23 - The materials cost variance report for Nickols...Ch. 23 - a. What are the two variances between the actual...Ch. 23 - Prob. 6DQ Ch. 23 - Would the use of standards be appropriate in a...Ch. 23 - a. Describe the two variances between the actual...Ch. 23 - If variances are recorded in the accounts at the...Ch. 23 - Briefly explain why firms might use nonfinancial...

Solution Summary: The author explains the direct material cost variance, which is a favorable variance since the actual price is less than the standard price.

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The direct materials quantity variance.

The total direct materials cost variance.

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