Question

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 of material were used at a cost of $51 per pound. What is the direct materials price variance? 3. A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the direct labor efficiency variance?

Answer #1

1) | Driect materials Quantity variance | |||||

(actual qty - standard qty allowed)*Standard rate | ||||||

(47000 - 8000*6)*50 | ||||||

50000 | F | |||||

2) | Direct materials price variance | |||||

(Actual price - standard price)*AQ purchased | ||||||

(51-50)*47000 | ||||||

47000 | U | |||||

3) | Direct labor Efficiency variance | |||||

(Actual hrs - standard hrs allowed)*standard rate | ||||||

(22000 - 8000*3)*8 | ||||||

16000 | F | |||||

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...

Standards for one unit of product:
Direct Materials: 5 pounds at $2 per pound
Direct Labor: 0.50 hour at $16 per hour
Materials and Labor Used to produce 8,500 units:
Direct Materials: 46,000 pounds at $3 per pound
Direct Labor: 4,000 hours at ? per hour
If the Direct Labor Price Variance is $4,600 Unfavorable, what
is the actual labor rate per hour?

A manufacturing company has a standard
quantity of direct materials of 6 pounds per unit at a standard
price of $2.20 per pound. In April the actual material price was
$2.40 per pound and the company produced 5,500 units. If the
company experienced a favorable material quantity variance of
$6,600 during the month, the actual quantity of material used
was:
A. 30,000 pounds.
B. 33,000 pounds.
C. 35,750 pounds.
D. 36,000 pounds.

A manufacturing company has a standard
quantity of direct materials of 6 pounds per unit at a standard
price of $2.20 per pound. In April the actual material price was
$2.40 per pound and the company produced 5,500 units. If the
company experienced a favorable material quantity variance of
$6,600 during the month, the actual quantity of material used
was:
A. 30,000 pounds.
B. 33,000 pounds.
C. 35,750 pounds.
D. 36,000 pounds.

Standards for producing one unit of product:
Standard
Quantity
Direct Materials 2lbs
Direct labor 2 hours
Other data:
Materials actually purchased
Material price variance
Materials actually used to produce 300 units of output
Labor efficiency variance
Standard
Price
$1.80 per lbs
$18 per hour
4,500 lbs
$450 unfavorable
780 lbs
$90 unfavorable
a. The material purchase price per pound.
b. The material quantity variance.
c. The actual number of hours worked.

Direct Materials Variances
Bellingham Company produces a product that requires five
standard pounds per unit. The standard price is $6 per pound. If
6,400 units used 31,400 pounds, which were purchased at $6.24 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
$
b. Direct materials quantity...

Direct Materials Variances
Bellingham Company produces a product that requires five
standard pounds per unit. The standard price is $4 per pound. If
3,000 units used 15,500 pounds, which were purchased at $3.8 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
$
b. Direct materials quantity...

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
Standard Price or Rate
Direct materials
5 pounds
$3.60 per pound
Direct labor
1.25 hours
$12.00 per hour
During May, Jackson purchased 125,000 pounds of direct material at
a total cost of $475,000. The total factory wages for direct labor,
for May were $327,600. Jackson manufactured 22,000 units of...

Direct Materials Variances Bellingham Company produces a product
that requires 9 standard pounds per unit. The standard price is $9
per pound. If 5,000 units required 45,900 pounds, which were
purchased at $8.64 per pound, what is the direct materials (a)
price variance, (b) quantity variance, and (c) total direct
materials 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 $ b....

Direct Materials Variances Bellingham Company produces a product
that requires 14 standard pounds per unit. The standard price is $6
per pound. If 3,400 units required 49,000 pounds, which were
purchased at $6.3 per pound, what is the direct materials (a) price
variance, (b) quantity variance, and (c) total direct materials
cost variance? Enter a favorable variance as a negative number
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number. a. Direct materials price variance $ Unfavorable...

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