Question

In: Accounting

XYZ Shirts' standard cost included 0.70 metres of direct material per t-shirt at $3.80 per metre....

XYZ Shirts' standard cost included 0.70 metres of direct material per t-shirt at $3.80 per metre. Hill actually used 32,500 metres of direct material at a cost of $3.75 per metre to produce 50,000 t-shirts.

  1. Calculate the total, price and quantity variances
  2. Create the journal entry(s) to reflect this situation
  3. Explain what the variances mean, what could be creating these variances, how you would use these variances for bonus purposes and how you would use this information to inform the budget discussions for next year (This is the most important part of the question, please provide explanation that is easy to understand)

Solutions

Expert Solution

Answer is given below

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Ceasar pants standard cost included 0.70 metres of direct material per pants at $3.80 per metre....
Ceasar pants standard cost included 0.70 metres of direct material per pants at $3.80 per metre. Ceasar actually used 32,500 metres of direct material at a cost of $3.75 per metre to produce 50,000 pants. a) Calculate the direct materials price variance: $ Answer b) Is the direct materials price variance favourable or unfavourable? c) Calculate the direct materials quantity variance: $ Answer d) Is the direct materials quantity variance favourable or unfavourable? e) Calculate the total direct materials variance:...
Material and Labor Variances The following actual and standard cost data for direct material and direct...
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs Standard Costs Direct material 4,200 lbs. @ $4.90 4,000 lbs. @ $5.20 Direct labor 5,700 hrs. @ $9.30 6,000 hrs. @ $9.50 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials...
Assume that ABC Co. sells T-shirts for $20/ shirt. The marginal cost of production is $9/...
Assume that ABC Co. sells T-shirts for $20/ shirt. The marginal cost of production is $9/ shirt, and fixed costs are $1,500/ year. The tax rate is 20%. What is the new break-even point of the number of T-shirts required to be sold if sales price and fixed costs are both reduced by 15%. Select one: a. None of the above b. 187 c. 159 Question 2 Question text XYZ Co. intends to expand operations and enters into a 10...
The following actual and standard cost data for direct material and direct labor relate to the...
The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs Standard Costs Direct material 21,450 lbs. @ $5.30 22,000 lbs. @ $5.10 Direct labor 34,100 hrs. @ $8.40 33,000 hrs. @ $8.70 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $Answer...
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...
Emmitt’s direct material cost is $9 per unit. The direct labor rate is $16 per hour...
Emmitt’s direct material cost is $9 per unit. The direct labor rate is $16 per hour and each units takes 1/4 hour to produce. Variable manufacturing overhead is $1 per unit and total budgeted fixed overhead is $7,800. A sales commission of $6 is paid on each unit. If Emmitt expects to produce 2,800 units and sell 1,160 units, what is the budget cost of goods sold per unit? Round your answer to the nearest 2 decimal places
If the standard cost for a pound of direct material 'X' for Company Zeta is $2.50,...
If the standard cost for a pound of direct material 'X' for Company Zeta is $2.50, but the purchasing manager found a source of 'X' outside the company's normal supply chain for $2.00 per pound. Discuss any pros and cons you may foresee from the purchasing manager sourcing the $2.00 per pound material.
Individual Problems 5-1 George's T-Shirt Shop produces 8,000 custom-printed T-shirts per month. George's fixed costs are...
Individual Problems 5-1 George's T-Shirt Shop produces 8,000 custom-printed T-shirts per month. George's fixed costs are $24,000 per month. The marginal cost per T-shirt is a constant $9. George's break-even price is _______ per shirt. Suppose George sells 50% more T-shirts per month. At this quantity of shirts, George's break-even price is _______ per shirt. Individual Problems 5-2 Suppose an initial investment of $80 will return $30/year for three years (assume the $30 is received each year at the end...
XYZ Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor...
XYZ Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $89.20 per raft. This includes 8 kilograms of direct material at a standard cost of $5.00 per kilogram, and 6 hours of direct labor at $8.20 per hour. The following data pertain to November: • Work-in-process inventory on November 1: none.             • RM inventory on November 1: 2,000 kilograms for $10,040 • Work-in-process inventory on November 30: 800 units (75 percent complete...
XYZ Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor...
XYZ Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $89.20 per raft. This includes 8 kilograms of direct material at a standard cost of $5.00 per kilogram, and 6 hours of direct labor at $8.20 per hour. The following data pertain to November: • Work-in-process inventory on November 1: none. RM inventory on November 1: 2,000 kilograms for $10,040 • Work-in-process inventory on November 30: 800 units (75 percent complete as to...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT