Question
In: Accounting
Parallel Enterprises has collected the following data on one of its products. During the period the...
Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. What is the direct materials price variance? Direct materials – standard (7 kg. @ $2.40/kg) $16.80 per finished unit Actual cost of materials purchased $402,500 Actual direct materials purchased and used 158,000 lbs
Solutions
Expert Solution
| CALCULATION OF THE STANDARD PRICE PER UNIT | ||||
| Standard Unit (KG) | Standard Rate (Per KG) | Standard Material Cost per unit | ||
| 7 | $ 2.40 | $ 16.80 | ||
| Calculation of Standard Material Cost for 25000 units | ||||
| Standard Unit (KG) | Standard Rate (Per KG) | Standard Material Cost | ||
| 175000 | $ 2.40 | $ 4,20,000.00 | ||
| (25000 Unit X7 KG) | ||||
| Calculation of the Actual Cost for producing 25000 Units | ||||
| Actual Qty | Actual Rate | Actual Material Purchase | ||
| 158000 | $ 2.55 | $ 4,02,500.00 | ||
| Material price Variance = (Standard Price - Actual Price) X Actual Qantity) | ||||
| Material price Variance = ($ 2.40 - $ 2.55) X 158000 | ||||
| Material price Variance = $0 .15 X 158000 | ||||
| Material price Variance = $ 23,300 (Unfavorable) | ||||
| Answer = Material Price Variance = $ 23,300 (Unfavourable) | ||||
ekkarill92 answered 1 year agoRelated Solutions
Parallel Enterprises has collected the following data on one of its products. During the period the...
Parallel Enterprises has collected the following data on one of
its products. During the period the company produced 25,000 units.
What is the direct materials price variance?
Direct materials – standard (7 kg. @ $2.40/kg)
$16.80 per finished unit
Actual cost of materials purchased
$402,500
Actual direct materials purchased and used
158,000 lbs
a.
$23,300 U
b.
$23,300 F
c.
$40,800 F
d.
$40,800 U
e.
$17,500 U
Parallel Enterprises has collected the following data on one of
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Variance Analysis Peter Enterprises has collected the following data on one of its products. During the...
Variance Analysis
Peter Enterprises has collected the following data on one of its
products. During the period the company produced生产了（件） 25,000
units. The direct materials quantity variance
直接原材料数量差异is:
Direct materials standard (7 kg. @ $2.05/kg)
$14.35
per finished unit
Actual cost of materials purchased
$332,150
Actual direct materials purchased and used
151,000
kg
Multiple Choice
$22,600 favorable.
$26,600 unfavorable.
$49,200 favorable.
$49,200 unfavorable.
$22,600 unfavorable.
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products. The direct materials price variance is:
Direct materials standard (3 lbs @ $1/lb)
$3
per finished unit
Total direct materials cost variance—unfavorable
$22,250
Actual direct materials used
100,000
lbs.
Actual finished units produced
25,000
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production of one of its products. Compute the variable overhead
efficiency variance.
Direct labor standard (2 hrs. @ $12.60/hr.)
$
25.20
per finished unit
Actual direct labor hours
101,500
hrs.
Budgeted units
61,000
units
Actual finished units produced
50,000
units
Standard variable OH rate (2 hrs. @ $16.20/hr.)
$
32.40
per finished unit
Standard fixed OH rate ($603,900/61,000 units)
$
9.90
per unit
Actual cost of variable overhead costs incurred
$
1,614,000
Actual...
22. Fletcher Company collected the following data regarding production of one of its products. Compute the...
22. Fletcher Company collected the following data regarding
production of one of its products. Compute the variable overhead
cost variance.
Direct labor standard (2.0 hrs. @ $13.40/hr.)
$
26.80
per finished unit
Actual direct labor hours
92,500
hrs.
Budgeted units
47,500
units
Actual finished units produced
45,500
units
Standard variable OH rate (2 hrs. @ $15.20/hr.)
$
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per finished unit
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): Mandas Inc. has provided the following data concerning one of the products in its standard...
): Mandas Inc. has provided the following data
concerning one of the products in its standard cost system.
Variable manufacturing overhead is applied to products
on the basis of direct labor-hours.
Inputs
Standard Quantity of Output
Standard Price or
Rate
or Hours per
Unit
Direct materials
7.80
liters
$ 7.40 per liter
Direct labor
0.40
hours
$25.70 per hour
Variable manufacturing
overhead
0.40
hours
$ 6.30 per hour
The...
Question 5 Fortes Inc. has provided the following data concerning one of the products in its...
Question 5
Fortes Inc. has provided the following data concerning one of
the products in its standard cost system. Materials price variances
is calculated on material purchased and materials quantity is based
on Material used in production. Variable manufacturing overhead is
applied to products on the basis of direct labor-hours.
Inputs
Standard Quantity or Hours per Unit of Output
Standard Price or Rate
Direct materials
10.0
ounces
$
8.10
per ounce
Direct labor
0.5
hours
$
24.70
per hour
Variable...
Kropf Inc. has provided the following data concerning one of the products in its standard cost...
Kropf Inc. has provided the following data concerning one of the
products in its standard cost system. Variable manufacturing
overhead is applied to products on the basis of direct
labor-hours.
Inputs
Standard Quantity or Hours per Unit of
Output
Standard Price or Rate
Direct materials
8.90
liters
$
8.50
per liter
Direct labor
0.50
hours
$
29.70
per hour
Variable manufacturing overhead
0.50
hours
$
7.40
per hour
The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
Fortes Inc. has provided the following data concerning one of
the products in its standard cost system. Variable manufacturing
overhead is applied to products on the basis of direct
labor-hours.
Inputs
Standard Quantity or Hours per Unit of Output
Standard Price or Rate
Direct materials
8.5
ounces
$
6.60
per ounce
Direct labor
0.6
hours
$
24.80
per hour
Variable manufacturing overhead
0.60
hours
$
4.90
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The company has reported the following actual results for the
product for...
Fortes Inc. has provided the following data concerning one of the products in its standard cost...
Fortes Inc. has provided the following data concerning one of
the products in its standard cost system. Variable manufacturing
overhead is applied to products on the basis of direct
labor-hours.
Inputs
Standard Quantity or Hours per Unit of Output
Standard Price or Rate
Direct materials
9.7
ounces
$
7.80
per ounce
Direct labor
0.4
hours
$
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per hour
Variable manufacturing overhead
0.40
hours
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The company has reported the following actual results for the
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