North Wind manufactures decorative weather vanes that have astandard materials cost of two pounds of raw materials at $1.50 perpound. During September 8,000 pounds of raw materials costing $1.55per pound were used in making 3,600 weather vanes.
Determine the materials price and quantity variance.
Materials price variance
Materials quantity variance
North Wind manufactures decorative weather vanes that have astandard materials cost of two pounds of raw materials at $1.50 perpound. During September 8,000 pounds of raw materials costing $1.55per pound were used in making 3,600 weather vanes.
Determine the materials price and quantity variance.
Materials price variance
Materials quantity variance
Related questions
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
| Direct materials: 6 pounds at $8 per pound | $ | 48 |
| Direct labor: 4 hours at $13 per hour | 52 | |
| Variable overhead: 4 hours at $5 per hour | 20 | |
| Total standard cost per unit | $ | 120 |
The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,500 units and incurred the following costs:
a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b. Direct laborers worked 73,000 hours at a rate of $14 per hour.
c. Total variable manufacturing overhead for the month was $427,050.
1. What raw materials cost would be included in the companyâs planning budget for March?
Raw material cost:
2. What raw materials cost would be included in the companyâs flexible budget for March?
Raw material cost:
3. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
Materials price variance:
4. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
Material quantity variance:
5. If Preble had purchased 188,000 pounds of materials at $7.20 per pound and used 170,000 pounds in production, what would be the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
Materials price variance:
6. If Preble had purchased 188,000 pounds of materials at $7.20 per pound and used 170,000 pounds in production, what would be the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
Materials quantity variance:
7. What direct labor cost would be included in the companyâs planning budget for March?
Direct labor cost:
Preble Company manufactures one product. Its variablemanufacturing overhead is applied to production based on directlabor-hours and its standard cost card per unit is as follows: |
| Directmaterials: 5 pounds at $8.00 per pound | $ | 40.00 |
| Direct labor: 2hours at $14 per hour | 28.00 | |
| Variable overhead: 2hours at $5 per hour | 10.00 | |
| Total standard costper unit | $ | 78.00 |
The planning budget for March was based on producing and selling25,000 units. However, during March the company actually producedand sold 30,000 units and incurred the following costs: |
| a. | Purchased 160,000 pounds of raw materials at a cost of $7.50 perpound. All of this material was used in production. |
| b. | Direct laborers worked 55,000 hours at a rate of $15.00 perhour. |
| c. | Total variable manufacturing overhead for the month was$280,500. 1.What raw materials cost would be included in the companyâsplanning budget for March? |
| What raw materials cost would be included in the companyâsflexible budget for March? What is the materials price variance for March?(Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zerovariance.).)
|
