All Related Questions of Material Price Variance

Q: The following information is available for Mandalay Company: /

The following information is available for Mandalay Company: Required (a) Determine the material price variance based on the quantity of materials purchased. (b) Determine the material quantity varia...

Q: Pharout Company uses a standard cost system. Job 822 is for

Pharout Company uses a standard cost system. Job 822 is for the manufacturing of 500 units of the product P521. The company’s standards for one unit of product P521 are as follows:...

Q: Each unit of job Y703 has standard requirements of 5 pounds of

Each unit of job Y703 has standard requirements of 5 pounds of raw material at a price of $100 per pound and 0.5 hour of direct labor at $12 per hour. To produce 9,000 units of this product, job Y703...

Q: Trieste Toy Company manufactures only one product, Robot Ranger. The

Trieste Toy Company manufactures only one product, Robot Ranger. The company uses a standard cost system and has established the following standards per unit of Robot Ranger: During November, the com...

Q: Fiber works Company is a manufacturer of fiberglass toy boats. The

Fiber works Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard cost system and has designed the system to isolate variances as soon as possible. During...

Q: At the start of the year, Frigicor estimated that the company

At the start of the year, Frigicor estimated that the company would produce 960 refrigeration units during the year (80 per month). Annual fixed overhead costs were estimated to be $1,200,000 ($100,00...

Q: The Quality Cabinet Company uses a standard costing system and produced 2

The Quality Cabinet Company uses a standard costing system and produced 2,000 cabinets during May. The standard cost of wood is $22 per linear foot, and the standard quantity for each cabinet is 27 li...

Q: Refer to the summary of variances in Exercise 11-16.

Refer to the summary of variances in Exercise 11-16. At Bell Computers, the ending balance in Finished Goods Inventory is $117,000; the ending balance in Work in Process Inventory is $54,000, and the...

Q: T&C Tees is a manufacturer of T-shirts.

T&C Tees is a manufacturer of T-shirts. The standard amount of 100% cotton jersey fabric used to make each T-shirt is 2.3 yards. The standard price per yard of the fabric is $2.75. During last month,...

Q: Will Norton, the general manager of Cummings Manufactured Siding, is

Will Norton, the general manager of Cummings Manufactured Siding, is reviewing a monthly variance summary. The summary reveals a large favorable material price variance and large unfavorable material...

Q: In her review of annual production variances, Amy Abel, CFO

In her review of annual production variances, Amy Abel, CFO of Chanceworth Manufacturing, noted that there was a $80,000 favorable material price variance, a $70,000 unfavorable material quantity vari...

Q: How might a favorable material price variance or a favorable labor rate

How might a favorable material price variance or a favorable labor rate variance be related to an unfavorable material quantity variance?

Q: At Frigicor, the standard price for the M640 electrical relay (

At Frigicor, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $57. Standards call for 2.5 relays per unit of finished product...

Q: The variance summary for Bell Computers is as follows: /

The variance summary for Bell Computers is as follows: Required: Prepare a journal entry to close the variance accounts at Bell Computers. Assume that the total variance is not material and is closed...

Q: At year-end 2010, the trial balance of Pennopscott Corp

At year-end 2010, the trial balance of Pennopscott Corp. showed the following accounts and amounts: Assume that, taken together, the variances are believed to be significant. Prepare the journal entri...

Q: In November 2010, DayTime Publishing Company’s costs and quantities of paper

In November 2010, DayTime Publishing Company’s costs and quantities of paper consumed in manufacturing its 2011 Executive Planner and Calendar were as follows: Actual unit purchase price …………………………………...

Q: Cave Company produces a product called Lem. The standard direct material

Cave Company produces a product called Lem. The standard direct material cost to produce one unit of Lem is 4 quarts of raw material at $2.50 per quart. During May 2010, 4,200 quarts of raw material w...

Q: Ayesha Inc. manufactures a product that requires 5 pounds of material

Ayesha Inc. manufactures a product that requires 5 pounds of material. The purchasing agent has an opportunity to purchase the necessary material at a vendor’s bankruptcy sale at $1....

Q: A&G makes wrought iron table and chair sets. During

A&G makes wrought iron table and chair sets. During April, the purchasing agent bought 25,600 pounds of scrap iron at $1.94 per pound. During the month, 21,400 pounds of scrap iron were used to produc...

Q: Griffon Corp. makes small plastic dog toys with the following material

Griffon Corp. makes small plastic dog toys with the following material and labor standards: During October, 60,000 pounds of material were acquired on account at $4.15 per pound. During October, 50,12...

Q: Aquatica uses a standard cost system for materials and labor in producing

Aquatica uses a standard cost system for materials and labor in producing small fishing boats. Production requires three materials: fiberglass, paint, and a purchased trim package. The standard costs...

Q: Surgical Products produces latex surgical gloves. Machines perform the majority of

Surgical Products produces latex surgical gloves. Machines perform the majority of the processing for 1,000 pairs of gloves per hour. Each pair of gloves requires 0.85 square foot of latex, which has...

Q: Weingold Inc. engages in routine and customer print jobs for customers

Weingold Inc. engages in routine and customer print jobs for customers. In November 2010, a client specified the use of one of the company’s standard papers for a large job, but asked for a high level...

Q: Jay Levitt Company budgeted the following cost standards for the current year

Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) ………….. $10.00 Direct labour (2 hours at $12 per hour) ………………………………...

Q: Montreal Inc. manufactures garden hoses for large stores. The

Montreal Inc. manufactures garden hoses for large stores. The standard costs for a dozen garden hoses are as follows: Calculate variances. Direct materials ……&...

Q: You are employed as the assistant management accountant in the group accountant’s

You are employed as the assistant management accountant in the group accountant’s office of Hampstead plc. Hampstead recently acquired Finchley Ltd, a small company making a speciali...

Q: Deadeye Ltd operates a standard costing system in which all stocks are

Deadeye Ltd operates a standard costing system in which all stocks are valued at standard cost. The standard direct material cost of one unit of product MS is £36, made up of 4.8 kg of m...

Q: 14. Durham Prints Ltd manufactures a single product that has the

14. Durham Prints Ltd manufactures a single product that has the following standard cost specifications (per unit). During June, the following actual data have been recorded in the production of 2,000...

Q: Fiberworks Company is a manufacturer of fiberglass toy boats. The company

Fiberworks Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard cost system and has designed the system to isolate variances as soon as possible. During t...