Question

In: Accounting

Gilder Corporation makes a product with the following standard costs:     Standard Quantity or Hours Standard...

Gilder Corporation makes a product with the following standard costs:

   

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
  Direct materials   5.5 grams     $4.00 per gram $22.00          
  Direct labor   1.8 hours     $20.00 per hour $36.00          
  Variable overhead   1.8 hours     $9.00 per hour $16.20          


The company reported the following results concerning this product in June.

    

  Originally budgeted output 5,700   units
  Actual output 5,600   units
  Raw materials used in production 28,490   grams
  Purchases of raw materials 32,900   grams
  Actual direct labor-hours 5,600   hours
  Actual cost of raw materials purchases $134,890   
  Actual direct labor cost $117,040   
  Actual variable overhead cost $48,720   

    

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

    

The materials quantity variance for June is:

A. $9,240 U

B. $9,471 F

C. $9,240 F

D. $9,471 U

Solutions

Expert Solution

Answer:-

Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price

                                              =(30800 grams – 28490 grams)*$4.00 per gram

                                             = $9240 Favourable

Where:-

Standard Quantity = No. of grams per unit*Actual output

                             =5.5 grams per unit *5600 units =30800 grams

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Gilder Corporation makes a product with the following standard costs:     Standard Quantity or Hours Standard...
Gilder Corporation makes a product with the following standard costs:     Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit   Direct materials   5.3 grams     $7.00 per gram $37.10             Direct labor   1.6 hours     $18.00 per hour $28.80             Variable overhead   1.6 hours     $7.00 per hour $11.20           The company reported the following results concerning this product in June.        Originally budgeted output 5,700   units   Actual output 5,600   units   Raw materials used in production 28,470   grams   Purchases of...
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or...
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 10.4 kilos $ 7.90 per kilo Direct labor 0.3 hours $ 39.00 per hour Variable overhead 0.3 hours $ 7.90 per hour The company reported the following results concerning this product in August. Actual output 5,100 units Raw materials used in production 30,930 kilos Purchases of raw materials 33,500 kilos Actual direct labor-hours 1,120 hours Actual cost of raw materials purchases...
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or...
Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 0.8 hours $ 16.00 per hour Variable overhead 0.8 hours $ 4.00 per hour The company produced 4,500 units in January using 10,260 grams of direct material and 2,240 direct labor-hours. During the month, the company purchased 10,830 grams of the direct material at $7.20 per gram. The actual direct labor rate was...
Better Than That Corporation makes a product with the following standard costs: Standard Quantity or Hours...
Better Than That Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 3.5 grams $ 1.00 per gram Direct labor 0.7 hours $ 11.00 per hour Variable overhead 0.7 hours $ 2.00 per hour The company planned to produce 3,200 units of output during July and reported the following actual results concerning this product in July. Actual output 3,000 units Actual direct labor-hours 1,910 hours Purchases of raw materials 12,100...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.2 ounces $ 2.00 per ounce $ 14.40 Direct labor 0.3 hours $ 16.00 per hour $ 4.80 Variable overhead 0.3 hours $ 5.00 per hour $ 1.50 The company reported the following results concerning this product in June. Originally budgeted output 2,600 units Actual output 2,200 units Raw materials used in production 20,400 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation 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...
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.8 pounds $ 7.30 per pound $ 49.64 Direct labor 0.5 hours $27.00 per hour $ 13.50 Variable overhead 0.5 hours $4.30 per hour $ 2.15 In June the company's budgeted production was 3,700 units but the actual production was 3,800 units. The company used 22,450 pounds of the direct material and 2,320 direct labor-hours to...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.5 ounces $ 2.00 per ounce $ 11.00 Direct labor 0.4 hours $ 11.00 per hour $ 4.40 Variable overhead 0.4 hours $ 8.00 per hour $ 3.20 The company reported the following results concerning this product in June. Originally budgeted output 4,100 units Actual output 4,100 units Raw materials used in production 20,500 ounces Purchases...
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 7.7 pounds $ 4.00 per pound Direct labor 0.1 hours $ 20.00 per hour Variable overhead 0.1 hours $ 4.00 per hour In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.8 ounces $ 4.00 per ounce $ 27.20 Direct labor 0.5 hours $ 12.00 per hour $ 6.00 Variable overhead 0.5 hours $ 7.00 per hour $ 3.50 The company reported the following results concerning this product in June. Originally budgeted output 2,200 units Actual output 2,700 units Raw materials used in production 16,900 ounces Purchases...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT