Direct Material Price Variance Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased. Direct Material Efficiency Variance Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price. Direct Labor Efficiency Variance Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate. To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

Question

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Answer 1

Question

Chapter 7, Problem 7.25E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

2.

To determine

Direct material variance for the materials purchased.

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Answer 2

Question

Chapter 7, Problem 7.25E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

2.

To determine

Direct material variance for the materials purchased.

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 7.25E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

2.

To determine

Direct material variance for the materials purchased.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.25E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

2.

To determine

Direct material variance for the materials purchased.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.25E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

2.

To determine

Direct material variance for the materials purchased.

Answer 6

Chapter 7, Problem 7.25E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

Answer 7

Chapter 7, Problem 7.25E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

To calculate: Price and efficiency variances of direct material and direct manufacturing labor providing the causes of their occurrence.

Answer 8

2.

To determine

Direct material variance for the materials purchased.

Answer 9

2.

To determine

Direct material variance for the materials purchased.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 7 - What is the relationship between management by...Ch. 7 - What are two possible sources of information a...Ch. 7 - Distinguish between a favorable variance and an...Ch. 7 - What is the key difference between a static budget...Ch. 7 - Why might managers find a flexible-budget analysis...Ch. 7 - Describe the steps in developing a flexible...Ch. 7 - List four reasons for using standard costs.Ch. 7 - How might a manager gain insight into the causes...Ch. 7 - List three causes of a favorable direct materials...Ch. 7 - Describe three reasons for an unfavorable direct...

Direct material variance for the materials purchased.

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Chapter 7 Solutions