Kennedy Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost per Unit Direct materials 8.2 pounds $7.00 per pound $57.40 Direct labor 0.4 hours $20.00 per hour $8.00 Variable overhead 0.4 hours $2.00 per hour $0.80 The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 23,000 pounds of the direct material at $7.99 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for June is: Select one: a. $22,770.00 b. $19,651.50 c. $26,252.86 d. $22,657.36
| Materials price variance = Quantity purchased*(Actual price-Standard price) |
| Materials price variance = 23000*(7.99-7.00)= $22,770.00 Unfavorable |
| Option A $22,770.00 is correct |
Kennedy Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price...
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.3 pounds $ 7.80 per pound $ 56.94 Direct labor 0.4 hours $ 32.00 per hour $ 12.80 Variable overhead 0.4 hours $ 4.80 per hour $ 1.92 In June the company's budgeted production was 4,200 units but the actual production was 4,300 units. The company used 22,950 pounds of the direct material and 2,370 direct...
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 12.0 pounds $11.50 per pound Direct labor 0.8 hours $36.00 per pound Variable overhead 0.8 hours $17.00 per pound In January the company produced 3,470 units using 13,880 pounds of the direct material and 2,896 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,640. The actual direct labor cost was...
Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 pounds $ 7.00 per pound Direct labor 0.5 hours $ 13.00 per hour Variable overhead 0.5 hours $ 7.00 per hour In January the company produced 4,500 units using 10,110 pounds of the direct material and 2,090 direct labor-hours. During the month, the company purchased 10,680 pounds of the direct material at a cost of $76,560. The actual direct...
t24 Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 6.0 pounds $ 5.50 per pound Direct labor 0.8 hours $ 24.00 per hour Variable overhead 0.8 hours $ 11.00 per hour In January the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,160. The actual...
Blumenthal Manufacturing makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 3.5 pounds $3.00 per pound Direct labor 0.8 hours $19.00 per hour Variable overhead 0.8 hours $8.00 per hour In July the company produced 3,500 units using 12,240 pounds of the direct material and 1,500 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was...
Miguez Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 2.3 liters $ 7.00 per liter $ 16.10 Direct labor 0.7 hours $ 22.00 per hour $ 15.40 Variable overhead 0.7 hours $ 2.00 per hour $ 1.40 The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours...
Kowaleski Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 4.9 grams $ 7.00 per gram Direct labor 0.6 hours $ 14.00 per hour Variable overhead 0.6 hours $ 4.00 per hour In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580 direct labor-hours. During the month the company purchased 24,100 grams of the direct material at a price of $6.80 per gram. The...
Miguez Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 2.3 liters $ 7.00 per liter $ 16.10 Direct labor 0.7 hours $ 22.00 per hour $ 15.40 Variable overhead 0.7 hours $ 2.00 per hour $ 1.40 The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.3 ounces $ 2.00 per ounce $ 10.60 Direct labor 0.2 hours $ 13.00 per hour $ 2.60 Variable overhead 0.2 hours $ 4.00 per hour $ .80 The company reported the following results concerning this product in June. Originally budgeted output 4,300 units Actual output 4,300 units Raw materials used in production 24,500 ounces Purchases...
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.0 ounces $ 3.00 per ounce $ 21.00 Direct labor 0.3 hours $ 14.00 per hour $ 4.20 Variable overhead 0.3 hours $ 9.00 per hour $ 2.70 The company reported the following results concerning this product in June. Originally budgeted output 2,400 units Actual output 2,900 units Raw materials used in production 22,000 ounces Purchases...