Question

In: Accounting

Urban Corporation prepared the following variance report.

Urban Corporation prepared the following variance report.

Fill in the missing amounts or letters in the report. (Round actual and standard price answers to 2 decimal places, e.g. 2.75.)

URBAN CORPORATION
Variance Report—Purchasing Department
For Week Ended January 9, 2020

Type of
Materials

  

Quantity
Purchased

  

Actual
Price

  

Standard
Price

  

Price
Variance

  


Explanation
Rogue11     lbs.   $5.20   $4.95   $6,525                                                            Neither favorable nor unfavorableUnfavorableFavorable   Price increase
Storm17   4,500 oz.   $   $3.21   $630 Unfavorable   Rush order
Beast29   21,200 units   $0.35   $   $1,060 Favorable

Solutions

Expert Solution

Rogue11:

Actual Price = $5.20 Standard Price = $4.95 Actual Price > Standard Price. So, Price Variance is Unfavorable

Material Price variance = (Standard Price - Actual Price)*Actual quantity purchased

                        -6,525    = ( $4.95 - 5.20 ) x Actual quantity purchased

Quantity purchased          =  -,6525 /  -0.25

 Quanitty purhased  =  26,100 lbs [ Answer ]

 

Storm17:

Material Price variance = (Standard Price - Actual Price)*Actual quantity purchased

                        -630    = ( $3.21 - Actual price ) x 4,500

Actual price x 4500      =  $14,445 + 630

Actual price                  =  15,075 / 4500

Actual price = $3.35 [ Answer ]

 

Beast29:

 

Material Price variance = (Standard Price - Actual Price)*Actual quantity purchased

                           1,060    = ( Standard Price - 0.35 ) x 21,200

   Standard price x 21,200 =  7420 +1060

    Standard price =   8,480 / 21,200

   Standard price  = $0.4  [Answer ]

Actual Price = $5.20 Standard Price = $4.95 Actual Price > Standard Price. So, Price Variance is Unfavorabl

Ramesh R answered 2 years ago
Next > < Previous

Related Solutions

Factory Overhead Cost Variance Report Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following...
Factory Overhead Cost Variance Report Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400 hours. Variable costs: Indirect factory wages $30,240 Power and light 20,160 Indirect materials 16,800     Total variable cost $67,200 Fixed costs: Supervisory salaries $20,000 Depreciation of plant and equipment 36,200 Insurance and property taxes 15,200     Total fixed...
The Capital Corporation prepared the following production cost report for Department 1 for October of the...
The Capital Corporation prepared the following production cost report for Department 1 for October of the current year. Work in process inventory, October 1                                                  2,000 units Units started in production in October                                             7,000 units Units transferred to finished goods inventory during October 6,900 units Beginning work in process consisted of the following:        Direct materials                                                                                                               $3,600        Direct labor                                                                                                                             $1,800        Manufacturing overhead                                                                                               $1,400                                                                                                                                                              $6,800 Costs incurred in October        Direct materials                                                                                                              $12,600        Direct...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 10,000 hours for production: Variable overhead costs: Indirect factory labor $24,000 Power and light 7,500 Indirect materials 17,000    Total variable overhead cost $ 48,500 Fixed overhead costs: Supervisory salaries $43,890 Depreciation of plant and equipment 11,550 Insurance and property taxes 21,560    Total fixed overhead cost 77,000 Total factory overhead...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 18,000 hours for production: Variable overhead cost: Indirect factory labor $43,200 Power and light 13,500 Indirect materials 21,600 Total variable overhead cost $ 78,300 Fixed overhead cost: Supervisory salaries $76,490 Depreciation of plant and equipment 20,130 Insurance and property taxes 37,580 Total fixed overhead cost 134,200 Total factory overhead...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 8,000 hours for production: Variable overhead costs: Indirect factory labor $23,200 Power and light 6,000 Indirect materials 12,800    Total variable overhead cost $42,000 Fixed overhead costs: Supervisory salaries $38,990 Depreciation of plant and equipment 10,260 Insurance and property taxes 19,150    Total fixed overhead cost 68,400 Total factory overhead cost...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 8,000 hours for production: Variable overhead costs: Indirect factory labor $24,800 Power and light 6,000 Indirect materials 10,400    Total variable overhead cost $ 41,200 Fixed overhead costs: Supervisory salaries $33,520 Depreciation of plant and equipment 8,820 Insurance and property taxes 16,460    Total fixed overhead cost 58,800 Total factory overhead...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 12,000 hours for production: Variable overhead costs: Indirect factory labor $39,600 Power and light 9,120 Indirect materials 16,800    Total variable overhead cost $ 65,520 Fixed overhead costs: Supervisory salaries $45,600 Depreciation of plant and equipment 12,000 Insurance and property taxes 22,400    Total fixed overhead cost 80,000 Total factory overhead...
#7 Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget...
#7 Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 16,000 hours for production: Variable overhead costs: Indirect factory labor $48,000 Power and light 11,520 Indirect materials 24,000    Total variable overhead cost $ 83,520 Fixed overhead costs: Supervisory salaries $59,280 Depreciation of plant and equipment 15,600 Insurance and property taxes 29,120    Total fixed overhead cost 104,000 Total factory...
#7 Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget...
#7 Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 16,000 hours for production: Variable overhead costs: Indirect factory labor $48,000 Power and light 11,520 Indirect materials 24,000    Total variable overhead cost $ 83,520 Fixed overhead costs: Supervisory salaries $59,280 Depreciation of plant and equipment 15,600 Insurance and property taxes 29,120    Total fixed overhead cost 104,000 Total factory...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 6,200 hours. Variable costs:    Indirect factory wages $21,080    Power and light 11,780    Indirect materials 9,920     Total variable cost $42,780 Fixed costs:    Supervisory salaries $12,690    Depreciation of plant and equipment 32,560    Insurance and property taxes 9,930...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT