![M9-9 (Algo) Calculating Direct Materials Cost Variances (LO 9. 3] Acoma, Inc., has determined a standard direct materials cos](http://img.homeworklib.com/questions/17fa28e0-7176-11ea-921b-27a32da03399.png?x-oss-process=image/resize,w_560)
Homework Answers
Question 1
Correct answer------------$4,840 Favorable
Working
| Material Price Variance | $ 5,500.00 | Favourable-F |
| Material quantity variance | $ 660.00 | Unfavourable-U |
| Total Material Variance (Material price variance + Material quantity variance) (5500+ (-660)) | $ 4,840.00 | Favourable-F |
Question 2
Answer----------
| Material Price Variance | $ 452.00 | Favourable-F |
| Material quantity variance | $ 1,292.00 | Unfavourable-U |
| Total Material spendind Variance | $ 840.00 | Unfavourable-U |
Working
| Actual DATA for | 2090 | Units | |
| Quantity (AQ) | Rate (AR) | Actual Cost | |
| Direct Material | 4520 | $ 3.70 | $ 16,724.00 |
.
| Standard DATA for | 2090 | Units | |
| Quantity (SQ) | Rate (SR) | Standard Cost | |
| [A] | [B] | [A x B] | |
| Direct Material | ( 2 feet x 2090 Units)=4180 feet | $ 3.80 | $ 15,884.00. |
.
| Material Price Variance | ||||||
| ( | Standard Rate | - | Actual Rate | ) | x | Actual Quantity |
| ( | $ 3.80 | - | $ 3.70 | ) | x | 4520 |
| 452 | ||||||
| Variance | $ 452.00 | Favourable-F | ||||
| Material Quantity Variance | ||||||
| ( | Standard Quantity | - | Actual Quantity | ) | x | Standard Rate |
| ( | 4180 | - | 4520 | ) | x | $ 3.80 |
| -1292 | ||||||
| Variance | $ 1,292.00 | Unfavourable-U | ||||
| Material Spending Variance | ||||||
| ( | Standard Cost | - | Actual Cost | ) | ||
| ( | $ 15,884.00 | - | $ 16,724.00 | ) | ||
| -840 | ||||||
| Variance | $ 840.00 | Unfavourable-U | ||||
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Knowledge Check 04 Calculate the direct materials spending variance when the direct materials price variance is...
Acoma, Inc., has determined a standard direct materials cost per unit of $6.60 (2 feet <...
Acoma, Inc., has determined a standard direct materials cost per unit of $6.60 (2 feet < $3.30 per foot). Last month, Acoma purchased and used 4,410 feet of direct materials for which it paid $14,112. The company produced and sold 2,090 units during the month. Calculate the direct materials price, quantity, and spending variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations...
Knowledge Check 02 Pastel Papers Inc. produces wrapping paper. The standard direct materials quantity is 0.20 pound per...
Knowledge Check 02 Pastel Papers Inc. produces wrapping paper. The standard direct materials quantity is 0.20 pound per unit and the standard rate is $0.30 per pound. During June, the company actually purchased and used 1,800 pounds of direct materials to produce 7,500 units, at an average cost of $0.40 per pound. Calculate the direct materials price variance. $180 favorable $750 favorable $750 unfavorable $180 unfavorable Pastel Papers Inc. produces wrapping paper. The standard direct materials quantity is 0.20 pound...
Acoma, Inc., has determined a standard direct materials cost per unit of $6.20 (2 feet x...
Acoma, Inc., has determined a standard direct materials cost per unit of $6.20 (2 feet x $3.10 per foot). Last month, Acoma purchased and used 4,280 feet of direct materials for which it paid $12,840. The company produced and sold 2,000 units during the month. Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Materials Price Variance...
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Acoma, Inc., has determined a standard direct materials cost per unit of $8.20 (2 feet x...
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need help with the journal Materials Direct Materials Price Variance Direct materials (5 lbs. @ $2.60)...
need help with the journal
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Rip Tide Company manufactures surfboards. Its standard cost information follows: Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 300 units) Standard Quantity 15 sq. ft. 10 hrs. 10 hrs. Standard Price (Rate) $ 5 per sq. ft. $15 per hr. $ 6 per hr. Standard Unit Cost $ 75.00 150.00 60.00 80.00 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number...
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Need help finding the materials price Variance.
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Check my work Exercise 08-15 Direct materials and direct labor variances LO P3 The following describes...
Check my work Exercise 08-15 Direct materials and direct labor variances LO P3 The following describes production activities of Mercer Manufacturing for the year Ketual direct materials used Actual direct labor used Actual units produced 27,000 lbs. at $4.75 per lb. 8,600 hours for a total of $172,860 51.000 Budgeted standards for each unit produced are 0.50 pound of direct material at $4.70 per pound and 10 minutes of direct labor at $21.00 per hour. AH - Actual Hours SH...
Acoma, Inc., has determined a standard direct materials cost per unit of $6.60 (2 feet < $3.30 per foot). Last month, Acoma purchased and used 4,410 feet of direct materials for which it paid $14,112. The company produced and sold 2,090 units during the month. Calculate the direct materials price, quantity, and spending variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations...
Acoma, Inc., has determined a standard direct materials cost per unit of $6.20 (2 feet x $3.10 per foot). Last month, Acoma purchased and used 4,280 feet of direct materials for which it paid $12,840. The company produced and sold 2,000 units during the month. Calculate the direct materials price, quantity, and spending variances. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Materials Price Variance...
Acoma, Inc, has determined a standard direct materials cost per unit of $7.00 (2 feet * $3.50 per foot). Last month, Acoma purchased and used 4,450 feet of direct materials for which it paid $15,130. The company produced and sold 2,030 units during the month Calculate the direct materials price, quantity, and spending variances. (Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Round your intermediate calculations...
Acoma, Inc., has determined a standard direct materials cost per unit of $8.20 (2 feet x $4.10 per foot). Last month, Acoma purchased and used 4,660 feet of direct materials for which it paid $18,640. The company produced and sold 2,190 units during the month Calculate the direct materials price, quantity, and spending variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations...
need help with the journal
Materials Direct Materials Price Variance Direct materials (5 lbs. @ $2.60) Accounts Payable $13.00 Work in Process Direct labor (0.75 hr. @ $18.00) 13.50 Direct Materials Usage Variance Materials Fixed overhead (0.75 hr. @ $4.00) 3.00 Variable overhead (0.75 hr. @ $3.00) 2.25 Work in Process Direct Labor Efficiency Variance Direct Labor Rate Variance Wages Payable Standard cost per unit $31.75 Work in Process Variable Overhead Control Fixed Overhead Control Algers computes its overhead rates...
Rip Tide Company manufactures surfboards. Its standard cost information follows: Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 300 units) Standard Quantity 15 sq. ft. 10 hrs. 10 hrs. Standard Price (Rate) $ 5 per sq. ft. $15 per hr. $ 6 per hr. Standard Unit Cost $ 75.00 150.00 60.00 80.00 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($520,000.00 - 200,000.00 units) Standard Quantity 1.90 lbs. 1.90 hrs. 1.90 hrs. Standard Price (Rate) $ 2.00 per lb. $15.00 per hr. $ 1.20 per hr. Standard Unit Cost $ 3.80 28.50 2.28 2.60 Barley Hopp had the following actual results last year: Number of units produced and sold Number of...
Need help finding the materials price Variance.
Exercise 10-7 Direct Materials Variances (LO10-1) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours 4.6 pounds 0.2 hours Standard Price or Rate $ 2.50 per pound $18.00 per hour Standard Cost $11.50 $ 2.40 Direct materials Direct labor During the most recent month, the following activity was recorded: a. Twenty thousand pounds...
Check my work Exercise 08-15 Direct materials and direct labor variances LO P3 The following describes production activities of Mercer Manufacturing for the year Ketual direct materials used Actual direct labor used Actual units produced 27,000 lbs. at $4.75 per lb. 8,600 hours for a total of $172,860 51.000 Budgeted standards for each unit produced are 0.50 pound of direct material at $4.70 per pound and 10 minutes of direct labor at $21.00 per hour. AH - Actual Hours SH...
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