Kokomo uses a standard costing system. For production of a fuel
cell, standards call for 4 model RN-3 valves per cell costing
$2,340 each. During 2018, the company purchased 260 valves for
$642,200. The company used 252 valves in the production of 61 fuel
cells (8 valves were ruined through installation error).
Calculate material price and quantity variances for the model RN-3
valves. (Enter all variances as a positive
number.)
Material Price Variance | $ |
Neither Unfavorable nor FavorableFavorableUnfavorable |
|||
Material Quantity Variance | $ |
FavorableNeither Unfavorable nor FavorableUnfavorable |
Materials Price Variance = (SP-AP) * AQ
= (2340 - 642,200/260) * 260
= 33,800 Unfavorable
.
Materials Quantity Variance = (SQ-AQ) * SP
= (61*4 - 252) * 2340
= 18,720 Unfavorable
Kokomo uses a standard costing system. For production of a fuel cell, standards call for 4...
Handley uses a standard costing system. For production of a fuel cell, standards call for 4 model RN-3 valves per cell costing $2,450 each. During 2018, the company purchased 250 valves for $570,000. The company used 240 valves in the production of 58 fuel cells (8 valves were ruined through installation error). Calculate material price and quantity variances for the model RN-3 valves. (Enter all variances as a positive number.) Material Price Variance $ Neither Unfavorable nor FavorableUnfavorableFavorable Material Quantity...
Uli uses a standard costing system. For production of a fuel cell, standards call for 4 model RN-3 valves per cell costing $2,130 each. During 2018, the company purchased 260 valves for $637,000. The company used 260 valves in the production of 63 fuel cells (8 valves were ruined through installation error). Calculate material price and quantity variances for the model RN-3 valves. (Enter all variances as a positive number.) Material Price Variance Material Quantity Variance
Exercise 11-7 Your answer is partially correct. Try again. Ceradyne uses a standard costing system. For production of a fuel cell, standards call for 4 model RN-3 valves per cell costing $2,380 each. During 2018, the company purchased 220 valves for $466,400. The company used 228 valves in the production of 55 fuel cells (8 valves were ruined through installation error. Calculate material price and quantity variances for the model RN-3 valves. (Enter all variances as a positive number.) Material...
Richetti Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards × $11.70) $10.53 Direct labor (1.20 hours × $13.30) $15.96 During May, the company produced 3,770 band hats; 4,400 yards of material were purchased for $42,240, and 3,270 yards of material were used in production. Also during May, 4,790 direct labor hours were worked at a cost of $57,480. Calculate material price and quantity...
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