How to calculate the direct material usage variance, Accounting Basics

+44 141 628 6080
[email protected]

How to calculate the direct material usage variance

Woods Enterprises prepared the following standard costs for production of one stuffed bear: Direct materials: 1.5 pounds of stuffing at $2 per lb
Direct labor: 2 hours of assembly at $15 per hour
Actual production costs for the production of 1,000 stuffed bears required 1,750 pounds of stuffing at a cost of $1.95 per pound and 1,950 labor hours at $15.25 per hour.

a) Calculate the direct material price variance
b) Calculate the direct material usage variance

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: How to calculate the direct material usage variance

Reference No:- TGS0706974

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Calculate depreciation expense and book value of the metal

Will the manager's incentives to replace the metal press change if the firm shifts from historical cost valuation to the proposed price-level-adjusted historical cost valuation?

Q : How should this fact be reported

During its fiscal year, a Pension Trust Fund buys 1,000 shares of stock, for which it pays $33,000. At year end, the stock has a fair value of $28,000. How should this fact be reported in the Trust Fund's financial statements?

Q : Calculate the roi for each restaurant

There are two different restaurant chains that you have identified as potential investment opportunities. You are looking ofr a minimum required rate of return of 8% per year.

Q : Finances the retirement of the bonds

The company, on 12/31/07, pays the fourth interest payment on the bond and exercises its option to call the bond as interest rates have declined.

Q : How to calculate the direct material usage variance

Actual production costs for the production of 1,000 stuffed bears required 1,750 pounds of stuffing at a cost of $1.95 per pound and 1,950 labor hours at $15.25 per hour.

Q : Salvage value to depreciate the asset

Ventura Corporation purchased machinery on January 1, 2009 for $630,000. The company used the sum-of-the-years'-digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life.

Q : Explain the net present value of the asset

Management is considering purchasing an asset for $32,000 that would have a useful life of 4 years and no salvage value. For tax purposes, the entire original cost of the asset would be depreciated over 4 years using the straight-line method.

Q : Complete the companys flexible budget performance

Complete the company's flexible budget performance report for May. Label each variance as favorable (F) or unfavorable (U). (Input all amounts as positive values.

Q : How to raw materials are required to produce

Alder Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the next year. Two units of raw materials are required to produce each unit of finished product.

1957890

Questions
Asked

3,689

Active Tutors

1444647

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: How to calculate the direct material usage variance

Reference No:- TGS0706974

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Calculate depreciation expense and book value of the metal

Q : How should this fact be reported

Q : Calculate the roi for each restaurant

Q : Finances the retirement of the bonds

Q : How to calculate the direct material usage variance

Q : Salvage value to depreciate the asset

Q : Explain the net present value of the asset

Q : Complete the companys flexible budget performance

Q : How to raw materials are required to produce

How we describe the term a persons mindset

Provide evidence for r-o theory of instrumental conditioning

Discuss five sets of forces that led to the criminalization

Problem concerning concept of dissociation the emotion

Attempting to verbally de-escalate a conflict situation

Encourage colleagues participate in walk for cancer research

Problem regarding example of parenting

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: How to calculate the direct material usage variance

Reference No:- TGS0706974

Recent Questions Asked Accounting Basics

Q : Calculate depreciation expense and book value of the metal

Q : How should this fact be reported

Q : Calculate the roi for each restaurant

Q : Finances the retirement of the bonds

Q : How to calculate the direct material usage variance

Q : Salvage value to depreciate the asset

Q : Explain the net present value of the asset

Q : Complete the companys flexible budget performance

Q : How to raw materials are required to produce

Asked Questions