Question
In: Accounting
Q1 Maria manufacturers gives the following details of standard cost relating to one unit of a...
Q1
Maria manufacturers gives the following details of standard cost relating to one unit of a product.
Quantity of raw material required 20 Kg.
Rate of raw material OMR 8 per Kg
Actual production of QPz:
Production during the month 2000 Kg.
Quantity of material used 40,000 Kg.
Raw material purchased 45000 kg @ 9 per kg.
Required:
-
Compute three variances relating to material and verify the answer. 4 Marks
-
If there is 20% decrease in standard usage of raw material , what impact it will create in material cost variance. 2 Marks
Q2
Material price variance - OMR 2500 (A)
Standard rate of material - OMR 10
Actual rate of raw material - OMR 15
Standard quantity of raw material for actual production - 6,600 Kg
Actual cost of raw material used in production – OMR 100,500
Calculate material cost variance 2 Marks
Q3.
How will you explain in your own words material mix variance and material yield variance. 2 Marks
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Q1 Maria manufacturers gives the following details of standard cost relating to one unit of a...
Q1
Maria manufacturers gives the following details of standard cost
relating to one unit of a product.
Quantity of raw material
required
20 Kg.
Rate of raw
material
OMR 8 per Kg
Actual production of QPz:
Production during the month
2000 Kg.
Quantity of material used
40,000 Kg.
Raw material purchased
45000 kg @ 9 per kg.
Required:
Compute three variances relating to material and verify the
answer.
If there is 20% decrease in standard usage of...
Q1 The standard cost card shows the following details relating to material needed to produce product...
Q1
The standard cost card shows the following details relating to
material needed to produce product QPz
Quantity of raw material required 20 Kg.
Rate of raw material OMR 3per Kg
Actual production of QPz:
Production during the month 200 Kg.
Quantity of material used 3,800 Kg.
Raw material purchased 5000 kg @ 4 per kg.
Calculate:
Material Cost Variance
Material Price Variance
Material Usage Variance. Also verify your answer
If there is 10% increase in standard material price...
Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials...
Standard Direct Materials Cost per Unit from Variance Data
The following data relating to direct materials cost for October
of the current year are taken from the records of Good Clean Fun
Inc., a manufacturer of organic toys:
Quantity of direct materials used
6,300 lbs.
Actual unit price of direct materials
$3.9 per lb.
Units of finished product manufactured
1,515 units
Standard direct materials per unit of finished product
4 lbs.
Direct materials quantity variance—unfavorable
$960
Direct materials price variance—favorable...
Standard cost information: Standard Quantity / Unit Standard Price Standard Cost / Unit Direct Material 2...
Standard cost information:
Standard Quantity / Unit
Standard Price
Standard Cost / Unit
Direct Material
2
$0.75
$1.50
Direct Labor
5
$0.35
$1.75
Variable Overhead
3
$1.20
$3.60
Actual cost information:
Total Actual Used
Total Actual Cost
Direct Material
19,500
$19,500
Direct Labor
34,500
$15,750
Variable Overhead
18,000
$22,000
Do not enter dollar signs or commas in the input boxes.
Round all Unit values to 2 decimal places. Round all other answers
to the nearest whole number.
Enter all variances...
The Leonard Company uses standard costs in its factory. The standard cost to produce one unit...
The Leonard Company uses standard costs in its
factory. The standard cost to produce one unit is as
follows:
Direct materials (1 g ×
$32/g)
$32
Direct labor (1.5 hours x $20 per
hour)
30
Variable overhead (1.5 direct labour hours x $10 per
hour) 15
Fixed Overhead (1.5 direct labour hours x $16 per
hour) 24
$101
Standards are based on normal monthly production involving 9,000
direct labor hours...
Cardinal Company has determined the following standard cost data necessary to manufacture one unit of its...
Cardinal Company has determined the following standard cost data
necessary to manufacture one unit of its primary product:
Direct Materials….. (6 pounds @ $20)
Direct Labor…………. .(8 hours @ $15)
During 20X1, Cardinal produced only 1 unit of product. This unit
required 7 pounds of direct material (a total of 8 pounds were
purchased at a cost of $18 per pound). In addition, total payroll
costs for direct labor during 20X1 were $130 (10 hours @ $13 per
hour).
Required:...
The table below gives statistics relating to two stocks. Mean Annual Return (%) Standard Deviation of...
The table below gives statistics relating to two stocks.
Mean Annual Return (%)
Standard Deviation of Return (%)
Skewness
Excess
Kurtosis
Stock A
11.5
5.5
-0.45
-0.5
Stock B
12.0
8.5
0.25
2.5
Based on the information in the table, contrast the distribution
of returns of Stock A and B. Evaluate the relative attractiveness
of Stock A and B
Rustica Ltd. uses one raw material for one of their products. The standard cost per unit...
Rustica Ltd. uses one raw material for one of their products.
The standard cost per unit at the beginning of the year was £28,
made up as follows:
Standard material cost per unit = 7 kg per unit @ £4 per kg =
£28
In the middle of the year, the supplier had changed the
specification of the material slightly due to problems experienced
in the country of origin, so that the standard had to be revised as
follows:
Standard...
A company produces and sells one product only, Peperoni, the standard cost for one unit being...
A company produces and sells one product only, Peperoni, the
standard cost for one unit being as
Follows.
$
Direct material A – 10 kilograms at $20 per
kg
200
Direct material B – 5 litres at $6 per
litre
30
Direct wages – 5 hours at $6 per hour
30
Fixed production overhead
50
Total standard cost
310
The fixed overhead included in the standard cost is based on an
expected monthly output of...
The standard cost card for a product indicates that one unit of the product requires 8...
The standard cost card for a product indicates that one unit of
the product requires 8 kilograms of a raw material at $0.80 per
kilogram. The production of the product in April was 870 units, but
production had been budgeted for 850 units. During April, 7,150
kilograms of the raw material were purchased for $5,577. All the
kilograms of the raw material purchased were used in production.
What was the materials quantity variance?
$152 F
$152 U
$280 F
$280...
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