Which of the following is not true of the use of materials variance information? a. The...
Which of the following is not true of the use of materials variance information? a. The production manager is generally responsible for materials usage. b. The production manager is concerned with minimizing scrap, waste, and rework. c. The purchasing department is responsible for acquiring quality materials. d. The purchasing agent has the responsibility for controlling the materials price variance. e. All of these choices are true.
Homework Answers
Solution:
The Correct Option is Option e. All of these choices are true.
Explanation: The production manager is generally responsible for materials usage. minimizing scrap, wastage, and reworking cost. Role of Purchase department is to procure the raw material required for production. It has to ensure that the raw material matches the expected quality and also at a reasonable price.
Add Answer to:
Which of the following is not true of the use of materials
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The purchasing agent of the Charlton Company ordered materials of lower quality in an effort to economie on price....
The purchasing agent of the Charlton Company ordered materials of lower quality in an effort to economie on price. Due to a mistake in production scheduling by the production manager, the materials were rush-shipped by airfreight at a rate higher than that ordinarily charged for shipment by truck, resulting in an unfavorable material price a nd The lower quality material proved to be able on the production line and resulted in excessive waste. In this situation, who should be held...
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All of the following are true regarding variance investigation except: a. variances are not investigated unless they are large enough to be of a concern. b. the investigation should be undertaken only if the anticipated benefits are greater than the expected costs. c. managers must consider whether a variance will recur. d. every variance is investigated. e. it is difficult to assess the costs and benefits of variance analysis on a case-by-case basis. Which of the following is true regarding...
1.Which of the following is true about "management by exception"? It requires managers to investigate all...
1.Which of the following is true about "management by exception"? It requires managers to investigate all favorable and unfavorable variances. It requires the use of variance analysis. It rarely requires the use of variance analysis. It requires managers to calculate standard costs, but ignore actual costs. None of the answer choices is correct. 2.Which of the following is most likely to cause an unfavorable direct materials quantity variance? Low quality materials increased waste of materials. High quality materials reduced waste...
can someone help me with 13 please d26 50 12 Unlavorable materials price and quantity variances...
can
someone help me with 13 please
d26 50 12 Unlavorable materials price and quantity variances are generally the responsibility of the Price Purchasing department Purchasing department Production department Production Department Quantity Purchasing Department Production Department Production Department Purchasing Department c. 13. Scorpion Production Company planned to use I yard of plastic per unit budgeted at $81 a yard. However the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only...
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Direct Materials Variances The following data relate to the direct materials cost for the production of 2,400 automobile tires: Actual: 62,200 lbs. at $1.8 per lb. Standard: 61,000 lbs. at $1.75 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and 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. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct...
20 Which of the following would be LEAST likely to contribute toward an unfavorable Labor Efficiency...
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Exercise 8-12B Responsibility for materials price variance Wayne Pittman Inc. makes ice cream that it sells...
Exercise 8-12B Responsibility for
materials price variance
Wayne Pittman Inc. makes ice cream that it sells in 5-gallon
containers to retail ice cream parlors. During Year 2, the company
planned to make 100,000 containers of ice cream. It actually
produced 97,000 containers. The actual and standard quantity and
cost of sugar per container follow.
Required
Determine the materials price variance and indicate whether the
variance is favorable (F) or unfavorable (U).
Determine the materials usage variance and indicate whether the...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,400 automobile tires: Actual: 61,700 lb. at $2.05 Standard: 62,900 lb. at $2.00 a. Determine the direct materials price variance, direct materials quantity variance, and 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. Price variance $ Unfavorable Quantity variance $ Favorable Total direct materials cost variance $...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 50,000 automobile tires: Actual: 725,000 lbs. at $3.00 per lb. Standard: 730,000 lbs. at $2.95 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and 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. Direct Materials Price Variance $ Direct Materials Quantity Variance $...
Which of the following does not result in a favorable direct materials price variance? 0 A....
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The purchasing agent of the Charlton Company ordered materials of lower quality in an effort to economie on price. Due to a mistake in production scheduling by the production manager, the materials were rush-shipped by airfreight at a rate higher than that ordinarily charged for shipment by truck, resulting in an unfavorable material price a nd The lower quality material proved to be able on the production line and resulted in excessive waste. In this situation, who should be held...
can
someone help me with 13 please
d26 50 12 Unlavorable materials price and quantity variances are generally the responsibility of the Price Purchasing department Purchasing department Production department Production Department Quantity Purchasing Department Production Department Production Department Purchasing Department c. 13. Scorpion Production Company planned to use I yard of plastic per unit budgeted at $81 a yard. However the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only...
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,400 automobile tires: Actual: 62,200 lbs. at $1.8 per lb. Standard: 61,000 lbs. at $1.75 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and 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. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct...
20 Which of the following would be LEAST likely to contribute toward an unfavorable Labor Efficiency Variance? A. The maintenance department has not been adequately monitoring production equipment. B. The production manager lowered variable overhead costs by reducing the supervision of the production line C. The purchasing manager reduced the price of materials by purchasing lower quality materials D. The production manager assigned a greater mix of higher-paid, higher-skilled employees to the production line E. None of the above would...
Exercise 8-12B Responsibility for
materials price variance
Wayne Pittman Inc. makes ice cream that it sells in 5-gallon
containers to retail ice cream parlors. During Year 2, the company
planned to make 100,000 containers of ice cream. It actually
produced 97,000 containers. The actual and standard quantity and
cost of sugar per container follow.
Required
Determine the materials price variance and indicate whether the
variance is favorable (F) or unfavorable (U).
Determine the materials usage variance and indicate whether the...
Which of the following does not result in a favorable direct materials price variance? 0 A. The purchasing manager changed to a lower-price supplier. O B. The price of direct materials decreased as a result of Industry oversupply ° C. Budgeted purchase prices of direct materials were set too low without careful analysis of market conditions. 0 D. The purchasing manager negotiated the direct materials prices more skillfully than was planned for the budget O E. The purchasing manager ordered...
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