Concept explainers
Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,550 cups of flour to make
4,750 biscuits. The
A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance?
B. What is the standard cost per biscuit for the semolina flour?
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Principles of Accounting Volume 2
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Principles of Accounting Volume 1
- The Whizbang Company makes a special type of toy. Each top takes 6 ounces of a special material that costs $3 per ounce. Whizbang bought 4,000 ounces of the material at a cost of $11,300. They used 3,400 ounces to make 534 toys. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance.arrow_forwardEd 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?arrow_forwardUse the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All materials used were bought during the current period. A. Compute the material and labor variances. B. comment on the results and possible causes of the variances.arrow_forward
- Corolla Manufacturing has a standard cost for steel of $20 per pound for a product that uses 4 pounds of steel. During September, Corolla purchased and used 4,200 pounds of steel to make 1,040 units. They paid $20.75 per pound for the steel. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance for the month of September. What would change if Corolla had made 2,200 units?arrow_forwardBandar Industries manufactures sporting equipment. One of the company’s products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,300 helmets, using 1,947 kilograms of plastic. The plastic cost the company $14,797. According to the standard cost card, each helmet should require 0.53 kilograms of plastic, at a cost of $8.00 per kilogram. 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)arrow_forwardLongman Inc is a manufacturer of crystal glasses. The standard direct materials quantity is 0.8 pound per glass at a cost of $0.60 per pound. The actual result for one months’s production of 6,800 glasses was 1.1 pounds per glass, at a cost of $0.40 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Select the formula then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U)arrow_forward
- The Whizbang Company makes a special type of toy. Each top takes 6 ounces of a special material that costs $2 per ounce. Whizbang bought 3,000 ounces of the material at a cost of $5,300. They used 3,399 ounces to make 534 toys. Compute the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance. Enter all amounts as positive numbers. Direct materials price variance $fill in the blank 1 Direct materials quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5arrow_forwardPerfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 1.55 feet of leather and predicts leather will cost $2.60 per foot. Suppose Perfect Pet made 50 collars during February. For these 50 collars, the company actually averaged 1.85 feet of leather per collar and paid $2.10 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 6. Calculate the direct materials price and quantity variances. Required 1: Calculate the standard direct materials cost per unit. (Round your answer to 2 decimal places.) Standard Direct Materials : _________________ per collar Required 2 & 3 : 2. Without performing any calculations, determine whether…arrow_forwardRuby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard. Determine the price variance, quantity variance, and total cost variance.arrow_forward
- Magno Cereal Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for the month of August?arrow_forwardUnific Manufacturing Inc. is a biscuit manufacturer and produces different types of biscuits. With the management of the company determined to identify different labor variances, it has prepared the following data: Particulars Amount The standard time for producing Chocolate biscuits 8,000 hours Standard Wage Rate $3 per hour Number of workers employed 50 Number of working days 25 Hours worked per day by each worker 8 hours Total wage bill footed $50,000 Using the information mentioned above, you are required to calculate: Labor rate variance and Labor efficiency variance The labor rate and labor efficiency variances will be:arrow_forwardRuby company produces a chair that requires 6 yds. of material per unit. The standard price of one yard material is $7.25. During the month, 6,000 chairs were manufactured, using 37,500 yards at a cost of $7.45. Determind (a) price variance, (b) quantity variance, and (c) cost variance.arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College