HomeworkLib
Question

Suzi Co. forecasts monthly production of 10,000 units. The materials cost breakdown is as follows: Materials............3...

Suzi Co. forecasts monthly production of 10,000 units. The materials cost breakdown is as follows: Materials............3 pounds per unit at $2 per pound In September Suzi produced 9,000 units. If 27,500 pounds of material at a cost of $2.50 per pound were used in production, compute the materials budget variance.

A. $14,750 unfavorable

B. $13,750 favorable

C. $14,750 favorable

D. $1,000 favorable

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Solution:

Material Budget Variance = Standard Cost of Materials - Actual Cost of Materials

= (9000*3*$2) - (27500*$2.50)

= $54000 - $68750

= $14,750 Unfavorable

Hence option "A" is correct.

0 0
Add a comment
Know the answer?
Add Answer to:
Suzi Co. forecasts monthly production of 10,000 units. The materials cost breakdown is as follows: Materials............3...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50...

    The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the direct materials quantity variance? Multiple Choice $47,000 unfevorable $47000 favorable $50,000 unfavcracle Multiple Choice $47,000 unfavorable. $47,000 favorable. $50,000 unfavorable $50,000 favorable. Prex 1 of 20 Next Fletcher Company collected the following data regarding production of...

  • Information concerning Johnston Co.'s direct materials costs is as follows: Standard price per pound Actual quantity...

    Information concerning Johnston Co.'s direct materials costs is as follows: Standard price per pound Actual quantity purchased Actual quantity used in production Units of product manufactured Materials purchase-price variance-favorable Budget data for the period: Units to manufacture Units of direct materials $ 7.15 3,100 pounds 3,000 pounds 770 $ 925 1,070 4,280 pounds The direct materials usage variance for the period, rounded to two decimal places, is: Ο $437.00 favorable. Ο $572.00 unfavorable. Ο $782.00 favorable. Ο $572.00 favorable. Ο...

  • Key Company produces a single product. The company’s standard cost per unit is based on 2.50...

    Key Company produces a single product. The company’s standard cost per unit is based on 2.50 pounds of material at a cost of $11.00 per pound. During the most recent operating period, Key used 16,080 pounds of materials at a total cost of $192,960 and produced 6,700 units of output. Use this information to address the following requirements: 1. Calculate the total budget variance for materials that Key Company would have found in its responsibility report. Indicate whether the variance...

  • 1.) Based on a predicted level of production and sales of 29,000 units, a company anticipates...

    1.) Based on a predicted level of production and sales of 29,000 units, a company anticipates total variable costs of $113,100, fixed costs of $29,000, and operating income of $203,580. Based on this information, the budgeted amount of fixed costs for 26,000 units would be: Multiple Choice $159,400. $232,580. $29,000. $113,100 $101,400 2.) Product A has a sales price of $21 per unit. Based on a 12,000-unit production level, the variable costs are $9 per unit and the fixed costs...

  • Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for...

    Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 4.6 pounds $ 2.50 per pound $ 11.50 Direct labor 0.2 hours $ 12.00 per hour $ 2.40 During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. The...

  • 1.A company produces widgets with budgeted standard direct materials of 2 pounds per widget at $5...

    1.A company produces widgets with budgeted standard direct materials of 2 pounds per widget at $5 per pound. Standard direct labor was budgeted at 0.5 hour per widget at $15 per hour. The actual usage in the current year was 25,000 pounds (an actual cost of $4.75 per pound) and 3,000 hours (an actual rate of $17 per pound )to produce 10,000 widgets. What was the direct labor usage variance? A. $30,000 favorable. B. $25,000 favorable. C. $25,000 unfavorable. D....

  • Ceelo Company purchased (at a cost of $12,510) and used 1,800 pounds of materials during May....

    Ceelo Company purchased (at a cost of $12,510) and used 1,800 pounds of materials during May. Ceelo’s standard cost of materials per unit produced is based on 1 pounds per unit at a cost $7.00 per pound. Production in May was 1,720 units. (a) Compute the total, price, and quantity variances for materials. (Round answers to 0 decimal places, e.g. 125.) Total Materials Variance $ UnfavorableFavorableNeither favorable nor unfavorable Materials Price Variance $ UnfavorableFavorableNeither favorable nor unfavorable Materials Quantity Variance...

  • Ceelo Company purchased (at a cost of $12,510) and used 1,800 pounds of materials during May....

    Ceelo Company purchased (at a cost of $12,510) and used 1,800 pounds of materials during May. Ceelo’s standard cost of materials per unit produced is based on 1 pounds per unit at a cost $7.00 per pound. Production in May was 1,720 units. (a) Compute the total, price, and quantity variances for materials. (Round answers to 0 decimal places, e.g. 125.) Total Materials Variance $ UnfavorableFavorableNeither favorable nor unfavorable Materials Price Variance $ UnfavorableFavorableNeither favorable nor unfavorable Materials Quantity Variance...

  • 16- A job was budgeted to require 3 hours of labor per unit at $11.00 per hour. The job consisted of 8,000 units and w...

    16- A job was budgeted to require 3 hours of labor per unit at $11.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $269,500. What is the direct labor rate variance? Multiple Choice $27,500 unfavorable. $22,000 favorable. $16,000 unfavorable. $16,000 favorable. $6,000 unfavorable. 20- Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10...

  • Need help finding the materials price Variance. Exercise 10-7 Direct Materials Variances (LO10-1) Huron Company produces...

    Need help finding the materials price Variance. Exercise 10-7 Direct Materials Variances (LO10-1) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours 4.6 pounds 0.2 hours Standard Price or Rate $ 2.50 per pound $18.00 per hour Standard Cost $11.50 $ 2.40 Direct materials Direct labor During the most recent month, the following activity was recorded: a. Twenty thousand pounds...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT