Question

QUESTION 5 The Standard material cost of produce one unit of a Cement Company is: 5...

QUESTION 5

  1. The Standard material cost of produce one unit of a Cement Company is:

    5 kg of Material A            @ SR 8 per kg

    8 kg of Material B            @ SR 5 per kg

    During a period, 30 units of mixture X was produced from the usages of:

    160 kg of Material A @ SR 7 per kg

    230 kg of Material A @ SR 4 per kg

    Calculate :  Material Price Variance (MPV)

    A.

    70 (Favorable)
    B.

    160 (Favorable)
    C.

    230 (Favorable)
    D.

    70 (Adverse)
    E.

    None of Above
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Material Price Variance = (Standard Price - Actual Price) * Actual Quantity

Here Material Price Variance = Material Price Variance of A + Material Price Variance of B

=((8-7) * 160) + ((5-4) * 230)

= 160+230

=390 Favorable

Material Price Variance of A = 160 Favorable

Material Price Variance of B = 230 Favorable

Total Material Price Variance = 390 Favorable

If the question is asked for total Material Price Variance Answer will be E. None of Above

Please give a thumbs up

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
QUESTION 5 (20 Marks) Information: A standard quantity of 2kg of material X at a standard...
QUESTION 5 Information: A standard quantity of 2kg of material X at a standard price of R4 per kg is allowed for the production of one unit of product Messi. The cost figures for the first quarter of 2020 showed that 4 400 kg of material X was purchased at R4.10 per kg. 2000 units of product Messi were produced using 4 200 kg of material X. Required: In respect of material, calculate and briefly comment on the following variances:...
Following information relates to Confusion Corporation Standard or Budgeted Costs Actual Costs. Material: 5kg per unit...
Following information relates to Confusion Corporation Standard or Budgeted Costs Actual Costs. Material: 5kg per unit @ $ 25 per unit Labor: 4hours per unit @ $6 per unit. 3,000 units were made using 18,000 kg @$30 per unit and 38,000 hours were used @ $ 4.5 per hour. Required: Calculate 1. Material Quantity Variance (MQV) 2. Material Price Variance (MPV) 3. Total material Variance or Overall Material Variance (TMV) 4. Labor Rate Variance (LRV) 5. Labor Efficiency Variance (LEV)...
The following standard direct material cost/unit have been established for product N90:            5 pounds of...
The following standard direct material cost/unit have been established for product N90:            5 pounds of direct material at $10 per pound During June 2,000 units of product N90 were made, and the quantity variance is favorable $2,000 and price variance is Unfavorable $9,800. All direct material purchased in June was used for producing the 2,000 units. How many pounds of direct material were actually used during June? Group of answer choices none of the other answers 9,800 pounds 10,000...
The following standard direct material cost/unit has been established for product N90:     5 pounds of direct...
The following standard direct material cost/unit has been established for product N90:     5 pounds of direct material at $10 per pound During June 2,000 units of product N90 were made, and the quantity variance is favorable $2,000 and price variance is unfavorable $9,800. All direct material purchased in June was used for producing the 2,000 units. What was the actual price per pound of the direct material? Group of answer choices $9/pound $9.8/pound $10/pound $11/pound
The following cost information is for Leslie Company. Actual results Total cost of purchasing material $58,000...
The following cost information is for Leslie Company. Actual results Total cost of purchasing material $58,000 Number of labor hours worked 1,000 hours Number of material pounds used in production 5,850 pounds Total labor cost $48,000 Number of units produced 280 units Number of material pounds purchased 6,250 pounds Leslie Company has established the following standards. Price per pound of materials $10.00 per pound Number of pounds of material to produce one unit 20 pounds Standard labor rate $50.00 per...
Ruby Company produces a chair that requires 5 yards of material per unit. The standard price...
Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $9.50. During the month, 4,500 chairs were manufactured, using 22,100 yards at a cost of $9.03 per yard. Determine the following: Enter favorable variances as negative numbers. a. Price Variance $ b. Quantity Variance $ c. Cost Variance $
Exercise 23-5 The standard cost of Product B manufactured by Pharrell Company includes 2.2 units of...
Exercise 23-5 The standard cost of Product B manufactured by Pharrell Company includes 2.2 units of direct materials at $6.1 per unit. During June, 27,200 units of direct materials are purchased at a cost of $5.90 per unit, and 27,200 units of direct materials are used to produce 12,200 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance $ Favorable Unfavorable Neither favorable nor unfavorable Materials price variance $ Unfavorable...
The standard variable overhead cost rate for the Gordon Company is $ 12.25 per unit. Budgeted...
The standard variable overhead cost rate for the Gordon Company is $ 12.25 per unit. Budgeted fixed overhead cost is $54,000. The company budgeted 6,000 units for the current period and actually produced 3,700 finished units. What is the fixed overhead volume​ variance Assume the allocation base for fixed overhead costs is the number of units expected to be produced. A. $8,675 favorable B. $20,700 unfavorable C. $8,675 unfavorable D. $20,700 favorable
Question 1 A company manufactures a single product for which the standard variable cost is:                            
Question 1 A company manufactures a single product for which the standard variable cost is:                                                                          K per unit Direct material: 81 kg x K7 per kg                            567 Direct labour:    97 hours x K8 per hour                   776 Variable overhead: 97 hours x K3 per hour              291                                                                                1,634 Budget Sales and production volume                   81,600 units Standard selling price                               K59 per unit Standard variable cost                             K24 per unit During January, 530 units were produced and the costs incurred were as follows:...
1. The standard materials cost to produce 1 unit of Product R is 6 pounds of...
1. The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the direct materials quantity variance? 2. The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT