Question

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 hour

Number of labor hours to produce one unit 3 hours

Compute Leslie’s Materials Quantity Variance.

$1,500 Favorable

$4,500 Favorable

$4,500 Unfavorable

$2,500 Unfavorable

$2,500 Favorable

$1,500 Unfavorable

Homework Answers

Answer #1
  • Correct Answer = Option #4: Material Quantity variance = $ 2500 Unfavourable

Material Quantity Variance

(

Standard Quantity = 280 units x 20 std pounds

-

Actual Quantity used

)

x

Standard Rate

(

5600

-

5850

)

x

$                        10.00

-2500

Variance

$              2,500.00

Unfavourable-U

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Q1 Doctor Bombay Manufacturing produces a single product and has prepared the following standard cost sheet...
Q1 Doctor Bombay Manufacturing produces a single product and has prepared the following standard cost sheet for one unit. Direct Materials (8 pounds at $2.50 per pound) Direct Labor ( 2.5 hours at $14 per hour) During the month of March 2018 275 units of the product were manufactured at the following costs were incurred: Direct Materials purchased and used 2,500 pounds The total cost was $5,850 Direct Labor Required 703 hours    The total cost was $9,673 (rounded) Based on...
1.) The following company information is available for March. The direct materials price variance is:   ...
1.) The following company information is available for March. The direct materials price variance is:      Direct materials purchased and used   3,400 feet @ $75 per foot   Standard costs for direct materials for March production   3,500 feet @ $73 per foot $500 favorable. $6,800 unfavorable. $7,000 unfavorable. $6,800 favorable. $7,000 favorable. 2.) Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:       Direct materials standard (3 lbs @ $1/lb)   $ 3...
Arthur's Plumbing reported the following: Demizio Valley Orchards, Inc. (DVO), developed standard costs for direct material...
Arthur's Plumbing reported the following: Demizio Valley Orchards, Inc. (DVO), developed standard costs for direct material and direct labor. In 2015, DVO estimated the following standard costs for one of their most well loved products, the DVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. Budgeted quantity Budgeted price Direct materials 2.0 pounds $6.25 per pound Direct labor...
1. Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price...
1. Bellingham Company produces a product that requires 14 standard pounds per unit. The standard price is $10.5 per pound. If 2,500 units used 35,700 pounds, which were purchased at $10.08 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ Favorable b. Direct materials quantity variance...
A company uses the following standard costs to produce a single unit of output. Direct materials...
A company uses the following standard costs to produce a single unit of output. Direct materials 6 pounds at $0.90 per pound = $5.40 Direct labor 0.5 hour at $12.00 per hour = $6.00 Manufacturing overhead 0.5 hour at $4.80 per hour = $2.40 During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based...
Exercise 25-13 (Essay) Ceelo Company purchased (at a cost of $10,200) and used 2,400 pounds of...
Exercise 25-13 (Essay) Ceelo Company purchased (at a cost of $10,200) and used 2,400 pounds of materials during May. Ceelo’s standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5 per pound. Production in May was 1,050 units. The total, price, and quantity variances for materials are as follows: Total Materials Variance $300 Favorable Materials Price Variance $1,800 Favorable Materials Quantity Variance $1,500 Unfavorable (b) Assume Ceelo also had an unfavorable labor...
Materials and Labor Variances At the beginning of the year, Craig Company had the following standard...
Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) $20.00 Direct labor (2 hrs. @ $15.00) 30.00 Standard prime cost per unit $50.00 The actual results for the year are as follows: Units produced: 440,000. Materials purchased: 3,080,000 pounds @ $5.00. Materials used: 2,596,000 pounds. Direct labor: 924,000 hours @ $13.68. Required: 1. Compute price and usage variances for...
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...
Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard...
Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3 pounds $5.30 per pound $15.90 Direct labor 2.90 hours $10.00 per hour $29.00 During May, Jackson purchased 96,300 pounds of direct material at a total cost of $529,650. The total factory wages for May were $754,500, 90...
We expect to pay our employees $20 per hour and spend 3 hours building a computer....
We expect to pay our employees $20 per hour and spend 3 hours building a computer. We build 100 computers using a total of 400 hours and paying total wages of $10,000. Our Labor Efficiency Variance would be: A. $2,500 unfavorable B. $2,000 unfavorable C. $2,500 favorable D. $2,000 favorable part 2 We expect to pay our employees $20 per hour and spend 3 hours building a computer. We build 100 computers using a total of 400 hours and paying...