Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yar
Q: How can I tell if it is favorable or unfavorable? The standard cost of Product B includes 2…
A: Standard costing means where standard is set for various cost element and actual cost is then…
Q: Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one…
A: Introduction: Variance analysis is a quantitative examination of the difference between actual and…
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A: Formula: Direct Materials Cost Variance = ( Actual Cost - Standard Cost ) × Actual Quantity
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A: Calculation of material price variance: =(Standard price (SP) - Actual price (AP)) * Actual quantity…
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A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor time…
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A: Direct materials price variance = (Actual price - Standard price)*Actual quantity
Q: Ruby Company produces a chair for which the standard specifies 3 yards of material per unit. The…
A: Direct materials cost variance =Direct materials price variance +Direct materials quantity variance
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A: SOLUTION- GIVEN, VARIABLE OVERHEAD RATE = $2 FIXED OVERHEAD RATE = $10 NORMAL LEVEL OF PRODUCTION =…
Q: Can you show me how this is done? The standard cost of Product B includes 2 units of direct…
A: Direct material:- Direct materials are the raw material that used up in the production of product.…
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A: Calculate the direct labor rate, efficiency, and spending variances.
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Q: Ruby company produces a chair that requires 6 yds. of material per unit. The standard price of one…
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A: Direct material variances: The difference between the actual material cost per unit and the…
Q: Ruby Company produces a chair for which the standard specifies 3 yards of material per unit. The…
A: (a) Calculate the direct material quantity variance. Working note: Calculate the standard…
Q: Ruby Company produces a chair that requires 4 yards of material per unit. The standard price of one…
A: Standard costing: Under this costing method, the expected costs are used in the accounting records…
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A: Direct labor rate variance = (Actual rate - Standard rate) x Actual hours Direct labor time variance…
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A: Direct Materials Price Variance = (Actual Price- Standard Price) * Actual Quantity Purchased Direct…
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A: The question is based on the concept of Cost Accounting.
Q: In all of the exercises involving variances, use “F” and “U” to designate favorable and unfavorable…
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A: Standard Quantity for actual output=Per unit material×Units produced
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
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Q: Direct material C 4 kg @ sh. 80 Direct material D 6 kg @ sh. 40 Actual data: Direct material…
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A: As you have posted multiple independent questions, we will answer first three sub-parts. Kindly…
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Q: Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one…
A: Here Price Variance we will get [ Bud. Price - Actual Price] x Budgeted Qty Produced…
Q: Can you show me how this is done? How do I know if it is favorable or unfavorable? The standard…
A: Direct materials quantity variance arises when there is a difference between the actual quantity…
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A: The calculation of direct materials price, quantity, and cost variance is as follows: The resultant…
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A: Direct material cost variance = Standard Cost - Actual Cost OR Direct material cost variance =…
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A: Fixed Overhead Variance = Spending Variance + Volume Variance As per the given case Fixed Overhead…
Q: Brookman, Inc, is a manufacturer of lead crystal glasses. The standard direct materials quantity is…
A: Direct material cost variance = Actual material cost - Standard material cost Actual material used…
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A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: The production cost for a waterproof phone case is $9 per unit and fixed costs are $27,000 per…
A: Standard cost = Total fixed costs + No. of units produced x Variable cost per unit = 27000 + 5000*9…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Following are the requisite Variances
Q: Brookman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Starts Inc. produces a product for which the standard specifies 8 yards of material per unit. The…
A: Standard costing: Under this costing method, the expected costs are used in the accounting records…
Q: Starts Inc. produces a product for which the standard specifies 4 yards of material per unit. The…
A: Variance: It refers to the difference between the standard or budgeted and actual results. The…
Q: The production cost for a waterproof phone case is $5 per unit and fixed costs are $27,110 per…
A: Standard cost=Variable cost per unit×Units+Fixed costs=$5×5,216+$27,110=$53,190
Q: Titus Company produced 6,800 units of a product that required 3 standard hours per unit. The…
A: Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overhead If the absorbed…
Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…
A: Variance analysis is a method of cost accounting used to find the variance between the actual and…
Q: Starts Inc. produces a product for which the standard specifies 4 yards of material per unit. The…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Dvorak Company produced 3,500 units of product that required 1.5 standard hours per unit. The…
A: Fixed overhead volume variance is the amount of fixed overhead actually incurred over and above the…
Q: The materials price variance is: $160 U B. $6,300 U C. $300 U D. $150 U 2. The materials quantity…
A: Materials price variance = (Actual Quantity * Standard price)- (Actual Quantity * Actual Price)…
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A:
Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.
Determine the following: Enter favorable variances as negative numbers. Favorable or unfavorable
| a. Direct materials price variance | $fill in the blank 1 | |
| b. Direct materials quantity variance | $fill in the blank 3 | |
| c. Total direct materials cost variance | $fill in the blank 5 |
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- Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?In all of the exercises involving variances, use F and U to designate favorable and unfavorable variances, respectively. E8-1 through E8-5 use the following data: The standard operating capacity of Tecate Manufacturing Co. is 1,000 units. A detailed study of the manufacturing data relating to the standard production cost of one product revealed the following: 1. Two pounds of materials are needed to produce one unit. 2. Standard unit cost of materials is 8 per pound. 3. It takes one hour of labor to produce one unit. 4. Standard labor rate is 10 per hour. 5. Standard overhead (all variable) for this volume is 4,000. Each case in E8-1 through E8-5 requires the following: a. Set up a standard cost summary showing the standard unit cost. b. Analyze the variances for materials and labor. c. Make journal entries to record the transfer to Work in Process of: 1. Materials costs 2. Labor costs 3. Overhead costs (When making these entries, include the variances.) d. Prepare the journal entry to record the transfer of costs to the finished goods account. Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. Case 1: All prices and quantities for the cost elements are standard, except for materials cost, which is 8.50 per pound. Case 2: All prices and quantities for the cost elements are standard, except that 1,900 lb of materials were used.Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All materials used were bought during the current period. A. Compute the material and labor variances. B. comment on the results and possible causes of the variances.
- The management of Golding Company has determined that the cost to investigate a variance produced by its standard cost system ranges from 2,000 to 3,000. If a problem is discovered, the average benefit from taking corrective action usually outweighs the cost of investigation. Past experience from the investigation of variances has revealed that corrective action is rarely needed for deviations within 8% of the standard cost. Golding produces a single product, which has the following standards for materials and labor: Actual production for the past 3 months follows, with the associated actual usage and costs for materials and labor. There were no beginning or ending raw materials inventories. Required: 1. What upper and lower control limits would you use for materials variances? For labor variances? 2. Compute the materials and labor variances for April, May, and June. Identify those that would require investigation by comparing each variance to the amount of the limit computed in Requirement 1. Compute the actual percentage deviation from standard. Round all unit costs to four decimal places. Round variances to the nearest dollar. Round variance rates to three decimal places so that percentages will show to one decimal place. 3. CONCEPTUAL CONNECTION Let the horizontal axis be time and the vertical axis be variances measured as a percentage deviation from standard. Draw horizontal lines that identify upper and lower control limits. Plot the labor and material variances for April, May, and June. Prepare a separate graph for each type of variance. Explain how you would use these graphs (called control charts) to assist your analysis of variances.Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. A. Compute the material and labor variances. B. Comment on the results and possible causes of the variances.Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Smith Industries bought 15,500 pounds of material in the current period. There was a $250 unfavorable direct materials price variance. A. How much in total did Sitka pay for the 15,500 pounds? B. What is the direct materials quantity variance? C. What is the total direct material cost variance? D. What ii 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance? E. It there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material?
- The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are 6,000, and variable costs are 12,000. Data for two months follow: For each month, make a single journal entry to charge overhead to Work in Process, to close Factory Overhead, and to record variances. Indicate the types of variances and state whether each is favorable or unfavorable. (Hint: You must first compute the flexible-budget and production-volume variances.)Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the material and $14 as the standard labor cost per hour. How has your explanation of the variances changed?At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
- Marten Company has a cost-benefit policy to investigate any variance that is greater than 1,000 or 10% of budget, whichever is larger. Actual results for the previous month indicate the following: The company should investigate: a. neither the materials variance nor the labor variance. b. the materials variance only. c. the labor variance only. d. both the materials variance and the labor variance.Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. A. What was the direct materials price variance for July? B. What was the direct materials quantity variance for July? C. What is the total direct materials cost variance? D. If Smith Industries used 15,750 pounds to make the baskets, what would be the direct materials quantity variance?Sommers Company uses the following rule to determine whether materials usage variances should be investigated: A materials usage variance will be investigated anytime the amount exceeds the lesser of 12,000 or 10% of the standard cost. Reports for the past 5 weeks provided the following information: Required: 1. Using the rule provided, identify the cases that will be investigated. 2. CONCEPTUAL CONNECTION Suppose investigation reveals that the cause of an unfavorable materials usage variance is the use of lower-quality materials than are normally used. Who is responsible? What corrective action would likely be taken? 3. CONCEPTUAL CONNECTION Suppose investigation reveals that the cause of a significant unfavorable materials usage variance is attributable to a new approach to manufacturing that takes less labor time but causes more material waste. Examination of the labor efficiency variance reveals that it is favorable and larger than the unfavorable materials usage variance. Who is responsible? What action should be taken?
