Question
In: Accounting
Acoma, Inc., has determined a standard direct materials cost per unit of $8 (2 feet times...
Acoma, Inc., has determined a standard direct materials cost per unit of $8 (2 feet times $4 per foot). Last month, Acoma purchased and used 4, 200 feet of direct materials for which it paid $15, 750. The company produced and sold 2,000 units during the month.
Calculate the direct materials price, quantity, and spending variances.
Solutions
Expert Solution
| Direct material price variance = Actual cost-(Standard rate*Actual Quantity) | ||||||||
| =15750-(4*4200)= | 1050 | Favorable | ||||||
| Direct material quantiy variance = Standard rate*(Standard quantity-Actual Quantity) | ||||||||
| =4*(4000-4200)= | 800 | Unfavorable | ||||||
| Direct material spending variance = 1050F + 800U = 250F | ||||||||
ekkarill92 answered 3 years agoRelated Solutions
… has the following standard cost sheet for its main product: Direct Materials 2 feet at...
… has the following standard cost sheet for its main
product:
Direct
Materials
2 feet
at
$5 per
foot
$10
Direct
Labor
0.5 hours at
$10 per hour
$5
Variable overhead
0.5 hours at
$2 per hour
$1
Fixed
overhead
0.5 hours at
$4 per hour
$2
Standard
overhead
18
The fixed and variable overhead rates were based on expected
activity of 3,200 hours.
During the year, the following actual results were recorded:
Actual results
for year:
Production
6,000 units...
Testing Inc. had the following amounts: Direct materials $8 per unit Direct Labor $15 per unit...
Testing Inc. had the following amounts:
Direct materials $8 per unit
Direct Labor $15 per unit
Variable overhead $5 per unit
Fixed overhead $90,000
Variable selling expenses $3 per unit
Fixed selling and admin. expenses $150,000
75,000 units produced
60,000 units sold at $40 each
Calculate the VARIABLE product cost per unit and prepare a
Contribution Margin Income Statement under Variable Costing in
order to fill in the rest of the information. (Remember you can
submit your calculations for possible...
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...
Company Inc. has the following direct materials standard to manufacture one unit: 1.5 pounds per unit...
Company Inc. has the following direct materials standard to
manufacture one unit:
1.5 pounds per unit at $4.00 per pound
Last week, 1,700 pounds of materials were purchased and used to
make 1,000 units. The materials cost a total of $6,630.
Determine the Price and Quantity Variances. Show work
Montana Corporation has the following standard cost sheet for its main product: Direct Materials 2 feet...
Montana Corporation has the following standard cost sheet for
its main product:
Direct Materials
2 feet at
$5 per foot
$10
Direct Labor
0.5 hours at
$10 per hour
$5
Variable Overhead
0.5 hours at
$2 per hour
$1
Fixed Overhead
0.5 hours at
$4 per hour
$2
Standard Unit Cost
$18
The fixed and variable overhead rates were based on expected
activity of 2,500 hours.
During the year, the following actual restults were
recorded:
Actual Results for Year:
Production...
Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.0 ounces...
Standard Quantity
or Hours
Standard Price
or Rate
Standard Cost Per Unit
Direct materials
7.0
ounces
$
4.00
per ounce
$
28.00
Direct labor
0.7
hours
$
14.00
per hour
$
9.80
Variable overhead
0.7
hours
$
9.00
per hour
$
6.30
The company reported the following results concerning this
product in May.
Actual output
2,900
units
Raw materials used in production
21,000
ounces
Purchases of raw materials
21,900
ounces
Actual direct labor-hours
2,000
hours
Actual cost of raw materials...
The standard costs for a unit of Dandy? follow: Direct materials (2 lb. at $7 per...
The standard costs for a unit of Dandy? follow:
Direct materials (2 lb. at $7 per lb.)
$14.00
Direct manufacturing labor (1/2 hour at $20 per hour)
10.00
Manufacturing overhead (80% of direct manufacturing labor
costs)
8.00
$32.00
The following data were obtained fromLowell: Lowell?'srecords
for the month of? May:
Debit
Credit
Revenues
$160,000
Accounts payable control (for May's purchases of direct
materials)
78,400
Direct materials price variance
$3,750
Direct materials efficiency variance
2,600
Direct manufacturing labor price variance
2,000...
Standard Direct Materials Cost per Unit Roanoke Company produces chocolate bars. The primary materials used in...
Standard Direct Materials Cost per Unit
Roanoke Company produces chocolate bars. The primary materials
used in producing chocolate bars are cocoa, sugar, and milk. The
standard costs for a batch of chocolate (1,757 bars) are as
follows:
Ingredient
Quantity
Price
Cocoa
450
lbs.
$0.40
per lb.
Sugar
120
lbs.
$0.60
per lb.
Milk
90
gal.
$1.30
per gal.
Determine the standard direct materials cost per bar of
chocolate. If required, round to the nearest cent.
$per bar
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it manufactures. Direct
materials (15 lbs. @ $4 per lb.) $60 Direct labor (4 hrs. @ $14 per
hr.) 56 During May the company incurred the following actual costs
to produce 8,200 units. Direct materials (125,700 lbs. @ $3.80 per
lb.) $ 477,660 Direct labor (36,900 hrs. @ $14.10 per hr.). 520,290
AH = Actual Hours SH = Standard Hours AR =...
Hutto Corp. has set the following standard direct materials and direct labor costs per unit for...
Hutto Corp. has set the following standard direct materials and
direct labor costs per unit for the product it
manufactures.
Direct materials (16 lbs. @ $4 per lb.)
$64
Direct labor (3 hrs. @ $15 per hr.)
45
During May the company incurred the following actual costs to
produce 8,600 units.
Direct materials (139,900 lbs. @ $3.80 per lb.)
$
531,620
Direct labor (29,100 hrs. @ $15.10 per hr.).
439,410
AQ = Actual Quantity
SQ = Standard Quantity
AP =...
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