Question

Paxon Co. has a price variance of $5,000 (F) and a quantity variance of $4,000 (U)...

Paxon Co. has a price variance of $5,000 (F) and a quantity variance of $4,000 (U) for raw materials. Given that the total actual cost for raw material is $40,000, what is the total standard cost?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Standard cost is $41,000

Explanation:

Material Cost variance is made up of :-

Material Cost variance = Material Price Variance (given) + Material quantity variance (given)

Material Cost variance = $5,000 (F) + $4,000 (U)

Material Cost variance = $1,000 (F)

Further more:-

formula of Material Cost variance

Material Cost variance = Standart material cost - actual material cost

$1,000 = Standart material cost - $40,000

Standart material cost = $ 40,000 + $1,000

Standart material cost = $ 41,000

Note:- Standard material cost > actual material cost where the outcomes are favourable

like in this question Material Cost variance = $1,000 (F) it is favourable, so standard material cost must be greater than actual material cost

-----------------------------------------------------please give ratings--------------------------------------------

you can ask queries in comments section

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Tropic Zone Corporation experienced the following variances: materials price $410 U, materials quantity $2,010 F, labor...
Tropic Zone Corporation experienced the following variances: materials price $410 U, materials quantity $2,010 F, labor price $940 F, labor quantity $590 F, and total overhead $1,420 U. Sales revenue was $108,700, and cost of goods sold (at standard) was $60,900. Determine the actual gross profit. Actual Gross Profit: $________
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.00 grams $14.00 per gram $98.00 Direct labor 0.20 hours $20.00 per hour $ 4.00 Variable overhead 0.20 hours $ 7.00 per hour $ 1.40 The company reported the following results concerning this product in June: Originally budgeted output 4,000 units Actual output 4,080 units Raw materials used in production 25,996 grams Purchases of raw materials...
Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit   Direct materials 3.0 ounces $4.50 per ounce $13.50   Direct labor 0.6 hours $10.50 per hour $6.30   Variable overhead 0.6 hours $3.00 per hour $1.80 The company reported the following results concerning this product in December.   Originally budgeted output 5,200 units   Actual output 5,000 units   Raw materials used in production 15,080 ounces   Actual direct labor-hours 3,200 hours   Purchases of...
1. Luma Inc. has provided the following data concerning one of the products in its standard...
1. Luma Inc. has provided the following data concerning one of the products in its standard cost system. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 4.8 ounces $6.90 per ounce The company has reported the following actual results for the product for September: Actual output 2,100 units Raw materials purchased 10,500 ounces Actual price of raw materials $ 7.80 per ounce Actual cost of raw materials purchased $ 81,900 Raw materials used...
Domanski Incorporated has established the following raw material standards for its APL4 product: Standard quantity of...
Domanski Incorporated has established the following raw material standards for its APL4 product: Standard quantity of the material per unit of output 4.5 pounds Standard price of the material $13.90 per pound The following data pertain to a recent month's operations: Actual material purchased 2,000 pounds Actual cost of material purchased $26,200 Actual material used in production 1,300 pounds Actual output 220 units of product I92 The direct materials purchases variance is computed when the materials are purchased. Required: a....
You have been given the following information about the production of Usher Co., and are asked...
You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations. Standard Cost Card Direct materials (9 pounds at $5 per pound) $45.00 Direct labor (0.70 hours at $10) 7.00 Variable overhead (0.70 hours at $5 per hour) 3.50 Fixed overhead (0.70 hours at $7 per hour) 4.90 $60.40 The following is a variance report for the most recent...
Thorson Corp makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Thorson Corp makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00 Direct labor 0.2 hours $ 23.00 per hour $ 4.60 Variable overhead 0.2 hours $ 6.00 per hour $ 1.20 The company reported the following results concerning this product in June. Originally budgeted output 2,700 units Actual output 2,800 units Raw materials used in production 19,380 ounces Purchases...
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 pounds $ 7.00 per pound Direct labor 1.6 hours $ 14.00 per hour Variable overhead 1.6 hours $ 2.00 per hour In January the company produced 4,600 units using 10,220 pounds of the direct material and 2,200 direct labor-hours. During the month, the company purchased 10,790 pounds of the direct material at a cost of $76,670. The actual direct...
The following standards have been established for a raw material used to make product O84: Standard...
The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output 8.9 meters Standard price of the material $ 19.00 per meter The following data pertain to a recent month's operations: Actual material purchased 5,300 meters Actual cost of material purchased $ 104,520 Actual material used in production 5,100 meters Actual output 680 units of product O84 The direct materials purchases variance is computed when the materials...
The following standards have been established for a raw material used to make product O84: Standard...
The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output 7.8 meters Standard price of the material $ 19.00 per meter The following data pertain to a recent month's operations: Actual material purchased 4,100 meters Actual cost of material purchased $ 81,590 Actual material used in production 3,800 meters Actual output 570 units of product O84 The direct materials purchases variance is computed when the materials...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT