Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one yard of material is $9.90. During the month, 5,600 chairs were manufactured, using 33,900 yards at a cost of $9.40 per yard. Enter favorable variances as negative numbers. (a) Determine the price variance. (b) Determine the quantity variance. (c) Determine the cost variance.

Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one yard of material is $9.90. During the month, 5,600 chairs were manufactured, using 33,900 yards at a cost of $9.40 per yard. Enter favorable variances as negative numbers. (a) Determine the price variance. (b) Determine the quantity variance. (c) Determine the cost variance.

Name: Ruby Company produces a chair that requires 6 yards of material per u
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one yard of material is $9.90. During the month, 5,600chairs were manufactured, using 33,900 yards at a cost of $9.40 per yard. Enter favorable variances

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

See similar textbooks

Similar questions

Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
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?
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.
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.
Ruby Company produces a chair that requires 3 yards of material per unit. The standard price of one yard of material is $13.90. During the month, 7,400 chairs were manufactured, using 21,800 yards at a cost of $13.21 per yard. Enter favorable variances as negative numbers. (a) Determine the price variance. $fill in the blank 1 (b) Determine the quantity variance. $fill in the blank 3 (c) Determine the cost variance. $fill in the blank 5
Ruby Company produces a chair that requires 4 yards of material per unit. The standard price of one yard of material is $10.20. During the month, 4,700 chairs were manufactured, using 19,200 yards at a cost of $10.81 per yard. Enter favorable variances as negative numbers. (a) Determine the price variance. Favorable (b) Determine the quantity variance. Unfavorable (c) Determine the cost variance. Favorable %24 %24
Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $10.60. During the month, 4,800 chairs were manufactured, using 33,300 yards at a cost of $10.07 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance
Alvarado Company produces a product that requires 15 standard pounds per unit. The standard price is $9.00 per pound. If 2,400 units used 34,600 pounds, which were purchased at $9.18 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Line Item Description Amount Variance a. Direct materials price variance $fill in the blank 1 b. Direct materials quantity variance $fill in the blank 3 c. Direct materials cost variance $fill in the blank 5
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 16,100 units used 36,900 pounds, which were purchased at $3.60 per pound. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Bellingham Company produces a product that requires five standard pounds per unit. The standard price is $3 per pound. If 5,900 units used 30,700 pounds, which were purchased at $2.91 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ b. Direct materials quantity variance $ c. Direct materials cost variance $
Bellingham Company produces a product that requires seven standard pounds per unit. The standard price is $5 per pound. If 6,300 units used 42,300 pounds, which were purchased at $5.2 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.