Solved: Materials price variance-material quantity variance, Accounting Basics

+44 141 628 6080
[email protected]

Materials price variance-material quantity variance

Problem: Stanton Company use the following standards in the production of its only product:

Direct Materials: 18 Pounds @ $25 per pound
Direct Labor: 6 Hours @ $18 Per Hour
During March, company records showed the following:
Materials purchased: 12,000 Pounds @ $264,000
Materials used: 15,000 Pounds
Direct Labor Hours: 4,700 Hours @ $21 Per Hour
Units Produced: 800 Units

Q1. The materials price variance is:

a $36,000 unfavorable
b $36,000 favorable
c $15,000 unfavorable
d $15,000 favorable

Q2. The material quantity variance is:

a $36,000 unfavorable
b $36,000 favorable
c $15,000 unfavorable
d $15,000 favorable

Q3. The direct labor rate variance is:

a $1,800 unfavorable
b $1,800 favorable
c $14,100 unfavorable
d $14,100 favorable

Q4. The direct labor efficiency variance is:

a $1,800 unfavorable
b $1,800 favorable
c $14,100 unfavorable
d $14,100 favorable

View Complete Question

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Materials price variance-material quantity variance

Reference No:- TGS01619708

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Gaap financial statements

Gravel has recorded no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 35%, what is Gravel's current income tax expense reported on its GAAP financial statements?

Q : Cvp application allow special discount

Identify the pros and cons of complying with the customer's request, and state the recommendation you would make to your sales manager.

Q : Equivalent units for dm and coversion costs

The company uses weighted average process costing method. Problem 1: What are the equivalent units for DM and Coversion costs respectively?

Q : Calculate costs under process costing

Direct Materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. The company uses FIFO to calculate its costs under process costing.

Q : Materials price variance-material quantity variance

Q1. The materials price variance is: a $36,000 unfavorable b $36,000 favorable c $15,000 unfavorable d $15,000 favorable. Q2. The material quantity variance is: a $36,000 unfavorable b $36,000 favorable c $15,000 unfavorable d $15,000 favorable

Q : Amount of manufacturing overhead costs

For Bauer Manufacturing Company, Inc. what is the annual manufacturing overhead allocation rate for the Machining Department and Assembly Department, respectively? What amount of manufacturing overhead costs will be allocated to Job No. 316?

Q : Determine cost of goods manufactured

Question 1: What is the cost of goods manufactured for 2008? a $230,000 b $257,000 c $283,000 d $355,000

Q : Demand for the three products-productive capacity

The fixed costs incurred in the factory are $100,000 per year. Demand for the three products exceed the company's productive capacity. The machine time is the constraint, with only 3,000 minutes of machine time available this week.

Q : Calculate the contribution margin

For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided:

1957815

Questions
Asked

3,689

Active Tutors

1412140

Questions
Answered

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

ask Question

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Materials price variance-material quantity variance

Reference No:- TGS01619708

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Gaap financial statements

Q : Cvp application allow special discount

Q : Equivalent units for dm and coversion costs

Q : Calculate costs under process costing

Q : Materials price variance-material quantity variance

Q : Amount of manufacturing overhead costs

Q : Determine cost of goods manufactured

Q : Demand for the three products-productive capacity

Q : Calculate the contribution margin

Why does victor coin the term hyper-violence

Symbolic interactionism took off as a theoretical approach

Identify problems and concerns that contributed

What when people get involved in community and social change

How code of suburbs differs from the code of street

What cases does female status tend to be highest

How sociological models help understand mental illness

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Materials price variance-material quantity variance

Reference No:- TGS01619708

Recent Questions Asked Accounting Basics

Q : Gaap financial statements

Q : Cvp application allow special discount

Q : Equivalent units for dm and coversion costs

Q : Calculate costs under process costing

Q : Materials price variance-material quantity variance

Q : Amount of manufacturing overhead costs

Q : Determine cost of goods manufactured

Q : Demand for the three products-productive capacity

Q : Calculate the contribution margin

Asked Questions