Question

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 0.20 hours $13.00 per hour
During September, DVO produced and sold 1,100 pies using 2,300 pounds of direct materials at an average cost per pound of $6.00 and 200 direct labor hours at an average wage of $13.25 per hour.
4) September's direct material flexible-budget variance is ________.
A) $100.00 unfavorable
B) $150.00 favorable
C) $50.00 unfavorable
D) $575 favorable
5)The direct material price variance during September is ________.
A) $575 favorable
B) $575 unfavorable
C) $50.00 unfavorable
D) $50.00 favorable
6) The direct material efficiency variance during September is ________.
A) $575 favorable
B) $575 unfavorable
C) $625 favorable
D) $625 unfavorable
7) The direct labor flexible-budget variance during September is ________.
A) $210.00 favorable
B) $210.00 unfavorable
C) $250.00 favorable
D) $250.00 unfavorable
8) The direct labor price variance during September is ________.
A) $260.00 unfavorable
B) $280.00 favorable
C) $50.00 unfavorable
D) $50.00 favorable
9) The direct labor efficiency variance during September is ________.
A) $260.00 favorable
B) $250.00 unfavorable
C) $280.00 favorable
D) $210.00 unfavorable

Homework Answers

Answer #1

(4)

Price variance = (Actual price – budgeted price) × (actual quantity) = (6 - 6.25)*2300 = -575
Efficiency variance = (Actual quantity – budgeted quantity) × (standard price or rate) = (2300 - 1100*2)*6.25 = 625
Flexible budget variance = price variance + efficiency variance = 625 - 575= 50 -- Option C is correct

(5)

Price variance = (Actual price – budgeted price) × (actual quantity) = (6 - 6.25)*2300 = -575 --- Option A is correct

(6)

Efficiency variance = (Actual quantity – budgeted quantity) × (standard price or rate) = (2300 - 1100*2)*6.25 = 625 --- Option D is correct

(7)

Price variance = (Actual price – budgeted price) × (actual quantity) = (13.25 - 13)*200 = 50
Efficiency variance = (Actual quantity – budgeted quantity) × (standard price or rate) = (200 - 1100*0.2)*13 = -260
Flexible budget variance = price variance + efficiency variance = -260 + 50= -210 --- Option A is correct

(8)

Price variance = (Actual price – budgeted price) × (actual quantity) = (13.25 - 13)*200 = 50 --- Option C is correct

(9)

Efficiency variance = (Actual quantity – budgeted quantity) × (standard price or rate) = (200 - 1100*0.2)*13 = -260 --- Option A is correct

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
Inaya Valley Orchards, Inc. (IVO), developed standard costs for direct material and direct labor. In 2011,...
Inaya Valley Orchards, Inc. (IVO), developed standard costs for direct material and direct labor. In 2011, IVO estimated the following standard costs for one of their most well loved products, the IVO 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 1.50 kilograms $7.25 per kilogram Direct labor 0.25 hours $14.00 per hour...
Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII estimated...
Heavy Products, Inc. developed standard costs for direct material and direct labor. In 2017, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price Direct materials 0.80 pounds $60 per pound Direct labor 0.10 hours $20 per hour During June, Heavy Products produced and sold 15,000 containers using 25,000 pounds of direct materials at an average cost per pound of $64 and 12,000 direct manufacturing labor-hours at an average wage...
Genent Industries, Inc. (GII), developed standard costs for direct material. GII estimated the following standard costs...
Genent Industries, Inc. (GII), developed standard costs for direct material. GII estimated the following standard costs for one unit of its product.                                     Standard quantity    Standard price      Direct materials 0.30 pounds $20 per pound During July, GII produced 3,000 containers using 1,000 pounds of direct materials at an average cost per pound of $19. The direct material quantity variance during July is ________. $1,000 favorable $1,100 unfavorable $1,000 unfavorable $2,000 unfavorable $1,100 favorable
1. yers Corporation has the following data related to direct materials costs for November: actual costs...
1. yers Corporation has the following data related to direct materials costs for November: actual costs for 4,610 pounds of material, $5.00; and standard costs for 4,470 pounds of material at $6.10 per pound. What is the direct materials price variance? a.$854 favorable b.$5,071 favorable c.$5,071 unfavorable d.$854 unfavorable 2. Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,650 pounds of material, $5.10 and standard costs for 4,430 pounds of material at...
MitchCon Industries, Inc. (MCI), uses standard costs for direct material and direct labor for planning and...
MitchCon Industries, Inc. (MCI), uses standard costs for direct material and direct labor for planning and control purposes. For 2019, MCI estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price Direct materials 0.12 pounds $40 per pound Direct labor 0.04 hours $20 per hour During June 2019, MCI produced and sold 15,000 containers using 1,700 pounds of direct materials at an average cost per pound of $35 and 630 direct...
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
Myers Corporation has the following data related to direct materials costs for November: actual costs for...
Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,700 pounds of material, $5.40; and standard costs for 4,410 pounds of material at $6.10 per pound. What is the direct materials price variance? a.$1,769 favorable b.$3,290 favorable c.$1,769 unfavorable d.$3,290 unfavorable
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...
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...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT