(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

Question

Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the standard hours allowed per unit of product.

Answer 1

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

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Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the standard hours allowed per unit of product.

Inputs Direct materials Direct labor Variable manufacturing overhead Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost The company has reported the following actual results for the product for September: Standard Quantity or Hours per Unit of Output Required: a. Compute the materials price variance for Septer b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. a. Materials price variance b. Materials quantity variance Labor rate variance Labor efficiency variance variable overhead spending variance Variable overhead efficiency variance C. d. 9.40 liters 0.60 hours 0.60 hours 11,600 units 110,000 liters $1,010,500 $ $ e. f. d. Compute the labor efficiency variance for September. e. Compute the variable overhead spending variance for September. 109,070 liters 6,380 hours f. Compute the variable…

Matt Company uses a standard cost system. Information for raw materials for Product RBI for the month of October is as follows: P1.60 Standard unit price P1.55 2,000 units Actual purchase price per unit Actual quantity purchased Actual quantity used 1,900 units 1,800 units Standard quantity allowed for actual production What is the materials purchase price variance?

Answer 2

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

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Answer 3

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

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Answer 4

Question

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Answer 6

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

Answer 7

Chapter 9, Problem 13E

To determine

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

Answer 8

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

Answer 9

To determine

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

Answer 10

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

Answer 11

To determine

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

Answer 12

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

Answer 13

To determine

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

Answer 14

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Answer 15

To determine

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Answer 16

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Answer 17

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Answer 27

Ch. 9 - Briefly describe the difference between budgetary...Ch. 9 - What are standard costs? When are they set?Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - How do the master budget, flexible budget, and...

(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

Solution Summary: The author explains the concept of total cost, which includes all the costs that are incurred manufacturing a product.

Concept explainers

Videos

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.

Chapter 9 Solutions

(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

Solution Summary: The author explains the concept of total cost, which includes all the costs that are incurred manufacturing a product.

Concept explainers

Videos

(a) Concept introduction: Total cost: It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs. The total cost of purchases for October.

(b) Concept introduction: Price variance: It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual. To compute: The direct materials price variance based on quantity purchased.

(c) Concept introduction: Quantity variance: It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product. To compute: The direct materials quantity variance based on quantity used.

(d) Concept introduction: Rate variance: It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour. To compute: The standard direct labour rate for October.

(e) Concept introduction: Efficiency variance: It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour. To compute: The direct labour efficiency variance for October.

Chapter 9 Solutions

(a)

Concept introduction:

Total cost:

It includes all the coststhat are incurred manufacturing a product. It can further be classified as variable costs, fixed costs and mixed costs.

The total cost of purchases for October.

(b)

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

To compute:

The direct materials price variance based on quantity purchased.

(c)

Concept introduction:

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To compute:

The direct materials quantity variance based on quantity used.

(d)

Concept introduction:

Rate variance:

It is referred to the amount which is computed by multiplying the number of actual hours with the difference between actual rate and standard rate per hour of direct labour.

To compute:

The standard direct labour rate for October.

(e)

Concept introduction:

Efficiency variance:

It is referred to the amount which is computed by multiplying the standard rate per hours with the difference between the number of actual hours and standard hours of direct labour.

To compute:

The direct labour efficiency variance for October.