1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
masha68 [24]
3 years ago
9

Aquatic Corp.'s standard material requirement to produce one Model 2000 is 15 pounds of material at $110 per pound. Last month,

Aquatic purchased 170,000 pounds of material at a total cost of $17,850,000. It used 162,000 pounds to produce 10,000 units of Model 2000. Calculate the materials price variance and materials quantity variance, and indicate whether each variance is favorable or unfavorable.
Business
1 answer:
dem82 [27]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Aquatic Corp.'s standard material required to produce one Model 2000 is 15 pounds of material at $110 per pound.

Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,850,000. It used 162,000 pounds to produce 10,000 units of Model 2000.

First, we need to calculate the direct material price variance:

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 17,850,000/170,000= $105 per pound

Direct material price variance= (110 - 105)*170,000= $850,000 favorable

<u>It is favorable because the actual price per pound was lower than expected.</u>

<u />

<u>Finally, we need to calculate the direct material quantity variance using the following formula:</u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 15*10,000= 150,000 pounds

Direct material quantity variance= (150,000 - 162,000)*110= $1,320,000 unfavorable

<u>It is unfavorable because it used more pounds per unit than estimated.</u>

You might be interested in
Rachael James just took a job with IKEA. As part of her employment agreement, IKEA required Rachael to sign an agreement, which
atroni [7]

Answer: (D) Non-compete agreement

Explanation:

  The non- compete agreement is one of the type of contract in which the an employee are preventing and also discourage them for not leaving the position in an organization due to the competition.

The main objective of this agreement is is avoid the utilization of the confidential information or data by another firm through employee of that company.

According to the given question, the Rachael signed the Non-compete agreement as it is one of the employment agreement that if she leaving the IKEA organization for any reason then she will not be able to work with the company that is competes against the IKEA organization for the two years.  

  Therefore, Option (D) is correct answer.

8 0
3 years ago
Rhonda Company enters into a contract with Petersburg, Inc. on March 5. According to the contract, Rhonda is scheduled to delive
mixer [17]

Anw12e1 2e dwqd ffef ewke

Explanation:

7 0
4 years ago
Read 2 more answers
A ________ is a registered representative acting as an intermediary to buy and sell securities for clients.
liubo4ka [24]
A s<span>tockbroker</span> is a registered representative acting as an intermediary to buy and sell securities for clients.
4 0
3 years ago
The Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last​ week, purchased and
pishuonlain [190]

Answer:

Explanation:

The question was missing the actual amount of potatoes used and their actual price = 98,000 pounds at $0.85 per pound:

1. Determine the direct material price and quantity variances.

direct materials price variance = AQ x (AP - SP) = 98,000 x ($0.85 - $1) = $14,700 favorable

direct material quantity variance =  SP x (AQ - SQ) = $1 x (98,000 - 95,000) = $3,000 unfavorable

2. Think of a plausible explanation for the variances found in Requirement 1

Since the actual price of potatoes was less than the standard price, the price variance was favorable. But since the actual quantity used was more than the standard quantity, the quantity variance was unfavorable.

3. Determine the direct labor rate and efficiency variances.

direct labor rate variance = AH x (AR - SR) = 2,100 x ($12.45 - $12.15) = $630 unfavorable

direct labor efficiency variance = SR x (AH - SH) = $14.15 x (2,100 - 2,000) = $1,415 unfavorable

4. Could the explanation for the labor variances be tied to the material's variances?

Probably the labor efficiency variance since more materials had to be processed, but the labor rate variance is completely independent from the materials variances.

8 0
3 years ago
In order to show disparate-treatment discrimination, a person must show that she or he is a member of a______class, applied for
slavikrds [6]

Answer:

i AM SORRY BUT I DONT UNDERSTAND WHAAT YOU ARE TRYING TO SAY TRY TO MAYBE REWORD IT (SORRY FOR THE CAP LOCK)

Explanation:

5 0
3 years ago
Other questions:
  • Assume that the demand for tuna in a small coastal town is given by p = 400,000 q1.5 , where q is the number of pounds of tuna t
    6·1 answer
  • One thirds of the checking accounts at the community bank earns interest. If 2,500 accounts are of this type, how many total acc
    5·1 answer
  • Personal Care Products recently introduced a new acai berry shampoo. Rinn, director of new product development, has just reviewe
    13·1 answer
  • Exercise 9-4 Direct Materials Variances [LO9-4] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the
    13·1 answer
  • Which business risk is controllable
    15·2 answers
  • Price ceilings are often established in order to
    7·1 answer
  • Ways in which climate change can affect the economy of South Africa​
    11·1 answer
  • what does hi mean it is a gesture in greeting someone why did i do this who knows hi zoo.m wit me im board geuss what you are to
    5·2 answers
  • Will give brainliest for all answers
    13·1 answer
  • suppose that the publisher of this textbook sets the price of the textbook to $90, and the current resale value is $60. at this
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!