Question

In: Accounting

Assume that a company produces baby blankets. Direct material standards for the blanket are that each...

Assume that a company produces baby blankets. Direct material standards for the blanket are that each will use 2 yards of material at a cost of $7.95 per yard. Last month the company produced 6000 blankets, using 13,500 yards of materials at a total cost of $97.875.

Find the amount of the spending, price, and quantity variances for materials.

Solutions

Expert Solution


Related Solutions

My Sheep’s Wool Blanket Company produces wool blankets that it sells for $350 each. My Sheep’s...
My Sheep’s Wool Blanket Company produces wool blankets that it sells for $350 each. My Sheep’s Wool Blanket Company began operations on January 1, 2015. The company uses actual costs and does not generally carry Work in Process Inventories at the end of the year. Costing for the first three years of operations is given below. Variable Costs for the first three years of operation (2015, 2016 & 2017):                                                                Per Blanket Direct Material                                           $125 Direct Labor                                              ...
The Koski Company has established standards as follows: Direct material                               &nb
The Koski Company has established standards as follows: Direct material                                                     3 pounds @ P4/pound = P12 per unit Direct labor                                                           2 hours @ P8/hour = P16 per unit Variable overhead                                              2 hours @ P5/hour = $10 per unit Actual production figures for the past year were as follows: Units produced                                                                                    500 Direct material used                                                                           1,600 pounds Direct material purchased (3,000 pounds)                                    $12,300 Direct labor cost (950 hours)                                                             $ 7,790 Variable overhead cost incurred                                     ...
The direct material and direct labor standards for one case of Springbreak Tonic are: Direct Materials...
The direct material and direct labor standards for one case of Springbreak Tonic are: Direct Materials (5 quarts @ $8 per quart) …………………… $40 Direct Labor (2 hours @ $12 per hour) ……………………….. 24 During the week ended March 7, the following activity took place: 16,000 quarts of raw materials were purchased for inventory at a cost of $8.10 per quart. 3,000 cases of finished product were produced. 14,700 quarts of raw material were used. 6,300 hours of direct labor...
Part A Sonne Company produces a perfume called Whim. The direct materials and direct labor standards...
Part A Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below: During the most recent month, the following activity was recorded: Standard Quantity or Hours Standards Price or Rate Standard Cost Direct Materials 7.2 ounces $2.50 per ounce $18.00 Direct Labor 0.4 ounces $10.00 per hour $4.00 During the most recent month, the following activity was recorded: a. Twenty thousand ounces of material were purchased at a...
Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard...
Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard Quantity is 3.8 kilos per unit; Standard price is $7.00 per kilo. The company produced 5,600 units in November using 21,750 kilos of the material. During the month, the company purchased 24,800 kilos of the direct material at a total cost of $168,640. The direct materials purchases variance is computed when the direct materials are purchased. The direct materials purchase price variance for November...
The Comet Company's budget contains these standards for materials and direct labor for a unit: Material...
The Comet Company's budget contains these standards for materials and direct labor for a unit: Material 5 lbs. @ $1 per lb. = $5 Labor 2 hrs. @ $5 per hr. = $10 Although 2,500 units were budgeted, 3,000 were actually produced. Materials weighing 16,000 lbs. were purchased for $18,400. Materials weighing 15,500 lbs. were issued to production. Direct Labor costs were $33,075 for 6,750 hrs. A.) What's the materials price variance? B.) What's the materials quantity variance? C.) What's...
1. Bus, Inc. produces 2 products, A and B, each requiring direct material and labor.  Product A...
1. Bus, Inc. produces 2 products, A and B, each requiring direct material and labor.  Product A sells for $10 each and Product B sells for $15 each.  It takes workers 3 hours to make a unit of A and 1 hour to make a unit of B.  It takes 2 pounds of materials to make a unit of A and 4 pounds to make a unit of B.  Total labor available is 200 hours; total material available is 300 pounds.  The variable costs associated...
Direct material variances. VW manufacturing produces WiFi Jammers. For each Jammer, VW plans on using 3.8...
Direct material variances. VW manufacturing produces WiFi Jammers. For each Jammer, VW plans on using 3.8 pounds of material at an expected price of $1.50 per pound. VW produces 5,000 jammers during July. During July, the company purchased 27,500 pounds of plastic at a price of $48,125. Only 20,000 pounds were actually used during July. Required: Compute the direct material quantity and price variance for July.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given    Standard Quantity or Hours Standard Priceor Rate StandardCost Direct materials 4.6 pounds $ 2.50 per pound $ 11.50 Direct labor 0.2 hours $ 18.00 per hour $ 3.60   During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. All of...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one car cover are as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost   Direct materials 9.0 metres of cloth $ 10 per metre $ 90.00   Direct labour 0 hours $ 20 per hour $ 7   Variable overhead 0 hours $ 8 per hour $ 3 Budgeted fixed overhead cost is $17,400, and the normal production volume is 2,885 car covers. Overhead is...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT