The following materials standards have been established for a particular product:
Standard quantity per unit of output 5.1 pounds Standard price $ 13.90 per pound
The following data pertain to operations concerning the product for the last month:
Actual materials purchased 5,850 pounds Actual cost of materials purchased $ 63,580 Actual materials used in production 5,350 pounds Actual output 770 units
The direct materials purchases variance is computed when the materials are purchased.
What is the materials quantity variance for the month?
Multiple Choice
$19,780 U
$15,466 U
$5,434 U
$6,950
The following materials standards have been established for a particular product:
| Standard quantity per unit of output | 5.1 | pounds | |
| Standard price | $ | 13.90 | per pound |
The following data pertain to operations concerning the product for the last month:
| Actual materials purchased | 5,850 | pounds | |
| Actual cost of materials purchased | $ | 63,580 | |
| Actual materials used in production | 5,350 | pounds | |
| Actual output | 770 | units | |
The direct materials purchases variance is computed when the materials are purchased.
What is the materials quantity variance for the month?
Multiple Choice
$19,780 U
$15,466 U
$5,434 U
$6,950
Related questions
17 A manufacturing company that has only one product hasestablished the following standards for its variable manufacturingoverhead. Variable manufacturing overhead standards are based onmachine-hours. |
Standard hours per unit of output | 3.90 | machine-hours |
Standard variable overhead rate | $11.25 | per machine-hour |
The following data pertain to operations for the last month: |
Actual hours | 8,800 | machine-hours |
Actual total variable manufacturing overheadcost | $95,850 | |
Actual output | 2,200 | units |
What is the variable overhead efficiency variance for themonth? |
$2,692 U
$7,513 F
$2,475 U
$7,513 U
18 The following materials standards have been established for aparticular product: |
Standard quantity per unit of output | 4.9 | grams |
Standard price | $12.00 | per grams |
The following data pertain to operations concerning the productfor the last month: |
Actual materials purchased | 3,800 | grams |
Actual cost of materials purchased | $ 44,270 | |
Actual materials used in production | 3,100 | grams |
Actual output | 570 | units |
The direct materials purchases variance is computed when thematerials are purchased. |
Required: | |
a. | What is the materials price variance for the month?(Input the amount as a positive value. Leave no cells blank- be certain to enter "0" wherever required. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance.) |
Materials Price Variance_______________
b. | What is the materials quantity variance for the month?(Input the amount a as positive value. Leave no cells blank- be certain to enter "0" wherever required. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance.) |
Materials quantity variance____________
Computation of Variances and Other MissingData
The following data for O'Keefe Company pertain to the production of500 units of Product X during December. Selected data items areomitted. Fill in the missing amounts.
| Direct materials (all materials purchased were used duringperiod) |
| Standard cost per unit: Answer pounds at 2.88 per pound |
| Total actual cost: Answer pounds costing $5,673 |
| Standard cost allowed for units produced: $5,760 |
| Materials price variance: $Answer AnswerFU |
| Materials quantity variance: $144 U |
| Direct labor |
| Standard cost: 2 hours at $7.00 |
| Actual cost per hour: $7.25 |
| Total actual cost: $Answer |
| Labor rate variance: $Answer AnswerFU |
| Labor efficiency variance: $140 U |
| Variable overhead |
| Standard costs: Answer hours at $4.00 per direct laborhour |
| Actual cost: $3,700 |
| Variable overhead spending variance: $Answer AnswerFU |
| Variable overhead efficiency variance: $Answer AnswerFU |
Please answer all parts of the question.
