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 |
| 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 its products. During the period the company produced 25,000 units. What is the direct materials quantity 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. |
$40,800 F |
|
| c. |
$40,800 U |
|
| d. |
$20,000 U |
|
| e. |
$17,500 F |
Solutions
Expert Solution
Answer to 1 is A
| Direct Material Price Variance = (Standard Rate - Actual Rate) x Actual Quantity |
| = ( 2.40 - 402500/158000 ) x 158000 |
| = 23300 Unfav |
Answer to 2 is B
| Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Rate |
| = ( 25000 x 7 - 158000 ) x 2.40 |
| =40800 Fav |
ekkarill92 answered 2 years 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
Variance Analysis Peter Enterprises has collected the following data on one of its products. During the...
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直接原材料数量差异is:
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Actual cost of materials purchased
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Actual direct materials purchased and used
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