Question

In: Accounting

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

Oddo Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
  Direct materials 3.0 ounces    $8.90 per ounce $26.70          
  Direct labor 0.7 hours    $25.00 per hour $17.50          
  Variable overhead 0.6 hours    $4.00 per hour $2.40          
The company reported the following results concerning this product in December.
  Originally budgeted output 4,590   units
  Actual output 4,390   units
  Raw materials used in production 13,490   ounces
  Actual direct labor-hours 2,954   hours
  Purchases of raw materials 15,360   ounces
  Actual price of raw materials $8.70   per ounce
  Actual direct labor rate $20.20   per hour
  Actual variable overhead rate $4.10   per hour

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 December is:

A. $2,848 U

B. $2,784 F

C. $2,848 F

D. $2,784 U

Solutions

Expert Solution

Answer:-

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

                                              =(13170 ounces – 13490 ounces)*$8.90 per ounce

                                             = $2848 Unfavourable

Where:-

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

                             =3 ounces per unit *4390 units =13170 ounces

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

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...
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...
Gallego Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Gallego Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 3.1 pounds $6.00 per pound Direct labor 0.8 hours $18.00 per hour Variable overhead 0.8 hours $6.00 per hour In October the company produced 3,000 units using 8,380 pounds of the direct material and 2,610 direct labor-hours. During the month, the company purchased 9,500 pounds of the direct material at a total cost of $55,100. The actual direct labor cost...
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit   Direct materials 4.0 grams     $8.00 per gram $32.00              Direct labor 0.6 hours     $12.00 per hour $7.20              Variable overhead 0.6 hours     $8.00 per hour $4.80            The company reported the following results concerning this product in June.   Originally budgeted output 7,300   units   Actual output 7,200   units   Raw materials used in production 28,340   grams   Purchases of raw materials...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT