Question

The materials price variance should be computed: Group of answer choices Only when materials purchased are...

The materials price variance should be computed:

Group of answer choices

Only when materials purchased are entirely used in the same period.

Only when there is a significant difference between standard and actual price per unit for the materials.

when materials are used in production.

when materials are purchased.

Homework Answers

Answer #1

The Answer is When materials are purchased.

1) Material price variance discuss about differences between actual cost of material and budgeted cost of material multiplied by actual direct material purchased.

2) It mainly focus price at the time of purchase of material and budgeted price.

3) So, After purchase itself we can compare the prices and define the material price variance.

4) To calculate material price variance, there is no need to start or complete production or significant differs in prices. So, Remaining options are Incorrect.

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
1) Which budget is the starting point in preparing financial budgets? Group of answer choices A)...
1) Which budget is the starting point in preparing financial budgets? Group of answer choices A) the budgeted balance sheet B) the capital expense budget C) the budgeted income statement D) the cash receipts budget 2) The direct materials budget is prepared using which budget's information? Group of answer choices A) raw materials budget B) cash receipts budget C) cash payments budget D) production budget 3. Which of the following includes only financial budgets? Group of answer choices A) budgeted...
A company’s materials price variance would be favorable if: a. the company purchased a smaller quantity...
A company’s materials price variance would be favorable if: a. the company purchased a smaller quantity of materials than originally planned. b. the actual price paid for materials was less than the standard price for materials. c. the actual quantity of materials used in production was less than the standard quantity allowed for the company’s actual output. d. the company purchased a larger quantity of materials than originally planned.
Raw materials purchased had a lower price than the standard price. The materials were found to...
Raw materials purchased had a lower price than the standard price. The materials were found to be of inferior quality. Accordingly, each unit of product consumed more materials than the amount that should have been used. Direct labor workers ended up taking longer to complete products because the inferior materials got jammed in the machinery, and slowed down machinery. Which of the following is likely to be the result of buying these inferior materials? Group of answer choices An unfavorable...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures faucets in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $15.00 Standard labor time per faucet 40 min. Standard number of lbs. of brass 3 lbs. Standard price per lb. of brass $2.40 Actual price per lb. of brass $2.50 Actual...
1. if the mix of employee's is such that higher skilled, better paid workers are employed...
1. if the mix of employee's is such that higher skilled, better paid workers are employed than expected: The result would be a favorable direct labor price (rate) variance because they work can produce more units in the same amount of time The result would be an unfavorable direct labor price (rate) variance This would automatically mean that there will be a unfavorable variance for variable manufacturing overhead if manufacturing overhead is based on direct labor This will result in...
8. What does a favourable direct materials price variance indicate? a. The actual cost of materials...
8. What does a favourable direct materials price variance indicate? a. The actual cost of materials purchased was greater than the standard cost of materials purchased. b. The standard cost of materials purchased was less than the actual cost of materials purchased. c. The standard cost of materials purchased was greater than the actual cost of materials purchased. d. The actual quantity of materials used was less than the standard quantity of materials used for actual production. 9. In flexible...
Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube...
Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 25 minutes and 6.8 quarts of oil are used. In June, Guillermo's Oil and Lube had 940 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month...
Requirements: Compute the following: Total direct materials price variance The direct materials mix variance The direct...
Requirements: Compute the following: Total direct materials price variance The direct materials mix variance The direct materials yield variance Mix and Yield Variances Rizzo’s Fish Market Seafood produces cans of seafood mix. The ingredients for each can are crab, shrimp, and oysters. To produce one batch of seafood mix weighing 200 Lbs., the following standard quantities, mix, and prices of these ingredients are needed: Types of Materials Standard Quantity (Lbs.) Standard Mix Standard Price Crab 60 30.00% $                      7.20 $       ...
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...
Which of the following would lead to a favorable labor efficiency variance? Group of answer choices...
Which of the following would lead to a favorable labor efficiency variance? Group of answer choices The actual director labor wage per hour is lower than the standard. Completing a job with fewer director labor hours than allowed by the standard Excessive number of hours worked in completing a job. Poor quality materials causing breakage and work interruptions.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT