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12345 [234]
3 years ago
6

Balt Company maintains a standard cost system; as such, all inventories, including materials, are carried on the books at standa

rd cost. Last period, Balt used 6,000 pounds of Material H to produce 800 units of Product C8. The company has established a standard of 7 pounds of Material H per unit of C8, at a price of $7.50 per pound of material. During the period, Balt purchased 3,000 pounds of Material H. The company spent $20,000 during the period to purchase material H. Required: 1. Calculate the direct materials purchase-price variance for the period, rounded to the nearest dollar. 2. Calculate the direct materials usage variance for the period, rounded to the nearest whole dollar.
Business
1 answer:
g100num [7]3 years ago
5 0

Answer:

1. Purchase price variance = $2,490 Favorable

2. Direct Material Usage Variance = $3,000 Unfavorable

Explanation:

Provided information, we have

Standard Material per unit = 7 pounds

Actual Units produced = 800 units

Standard units = 800 \times 7 = 5,600 pounds

Actual units = 6,000 pounds

Standard Price per pound = $7.50

Actual price = \frac{20,000}{3,000} = $6.67

1. Purchase price variance = (Standard Price - Actual Price) \times Actual Quantity Purchased

= ($7.50 - $6.67) \times 3,000 = $2,490 Favorable

As the price at which units are purchased is less than standard, the variance is favorable.

2. Direct Material Usage Variance = ( Standard Quantity - Actual Quantity) \times Standard Rate

= (5,600 - 6,000) \times $7.50

= - $3,000 Unfavorable

As we can see, the actual quantity used is higher than the standard quantity, therefore the variance is unfavorable.

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The good consideration while selecting a bank includes:

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3 0
2 years ago
Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the poo
allochka39001 [22]

Answer:

Results are below.

Explanation:

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Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Pool 1= 20,000/10,000= $2 per direct labor dollar

Pool 2= 15,000/50= $300 per setup

Pool 3= 10,000/200= $50 per hour

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Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product A:

Pool 1= 2*4,000= 8,000

Pool 2= 300*20= 6,000

Pool 3= 50 *50= 2,500

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Product B:

Pool 1= 2*6,000= 12,000

Pool 2= 300*30= 9,000

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Total allocated costs= $28,500

8 0
3 years ago
A customer value proposition is a unique strength relative to competitors that provides superior returns, often based on quality
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4 0
3 years ago
Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is?
ella [17]
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7 0
3 years ago
The following information relates to Sheridan Company for the year 2022.
aliina [53]

Answer:

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Service revenue                            $52,500

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Utilities expense                             ($2,600)

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<u />

b. Computation of comprehensive income statement

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Add: Other Comprehensive Income  <u> $380    </u>

Comprehensive Income                      <u>$16,470</u>

Note: Dividend will not be included as it forms part of Income statement

5 0
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