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krok68 [10]
2 years ago
8

Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by

selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price
Business
1 answer:
otez555 [7]2 years ago
3 0

Question Completion:

A manufactured product has the following information for June.

                                 Standard                        Actual

Direct materials     6 lbs. at $8 per lb.       48,500 lbs. at $8.10 per lb.

Direct labor            2 hrs. at $16 per hr.     15,700 hrs. at $16.50 per hr.

Overhead               2 hrs. at $12 per hr.     $198,000

Units manufactured                                    8,000

Answer:

Direct materials price variance = $4,850 U

Direct materials quantity variance = $4,000 U

Explanation:

a) Data and Calculations:

                                                 Actual            Standard

Direct materials price per lbs  $8.10                 $8.00

Direct labor rate per hour      $16.50              $16.00

Quantity:

Direct materials                      48,500         48,000 (6 * 8,000)

Direct labor hours                   15,700         16,000 (2 * 8,000)

Direct materials price variance = SP - AP * AQ

= $8 - $8.10 * 48,500

= $0.10 * 48,500

= $4,850 U

Direct materials quantity variance = SQ - AQ * SP

= 48,000 - 48,500 * $8

= $4,000 U

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D. Altering financial statement

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2 years ago
Jim has part ownership in a house. He has decided to sell his interest. He signs an agreement with a local real estate designate
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Answer:

joint tenant

Explanation:

Based on the information provided within the question it seems that Jim is most likely holding his part ownership as joint tenant. This is a unique type of ownership in which more than one individual share ownership of a property. These individuals share the exact same amount of rights to do with the property as they wish. Which is why Jim was able to sign away his part of the ownership without informing the other owners.

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3 years ago
Fitness Bands Corporation gathered the following information for Job​ #928: Standard Total Cost Actual Total Cost Direct materia
Eduardwww [97]

Question:                                      

                                                            standard total cost        Actual total cost

Direct material

Standard  2000 pints  $3.50/pint                   $7,000

Actual      2,500 pints   $5.00/pint                                                       $12,000

Answer:

Materials quantity​ variance= $1,750 unfavorable

Explanation:

<em>Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.  </em>

<em>It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price  </em>

                                                                                               pints

Standard quantity allowed                                                  2,000

Actual quantity used                                                           <u> 2,500</u>

Quantity variance                                                                 500 unfavorable

Standard price                                                                     <u> $3.50 </u>

Materials quantity​ variance                                               <u>1,750  </u>unfavorable

Materials quantity​ variance= $1,750 unfavorable

8 0
3 years ago
A company issued 70 shares of $30 par value preferred stock for $4,000 cash. The journal entry to record the issuance is:______.
PtichkaEL [24]

Answer:

E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.

Explanation:

Journal Entry for Issuance of 70 shares of $30 par value preferred stock for $4,000 is -

Cash Debited -  $4,000

Paid in Capital in excess of Par value Credited -  $1,900

Preferred Stock (70 shares × $30 each) Credited - $2,100

The correct option is - E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.

7 0
2 years ago
Bina Co. purchased a vehicle on January 1st for $15,000 and estimates it will use the vehicle for eight years with a $3,000 salv
zhuklara [117]

Using the double  declining-balance depreciation method,  the vehicle's second year depreciation expense is: $2,812.50.

<h3>Second year depreciation expense </h3>

First step is to calculate the first  year depreciation expense

First  year depreciation expense=15,000×(100%/8 x 2)

First  year depreciation expense=15,000 x 25%

First  year depreciation expense=3,750

Second step is to calculate Second year depreciation expense

Second year depreciation expense = (15,000-3750) x 25%

Second year depreciation expense=11,250x 25%

Second year depreciation expense  =2812.50

Therefore  Using the double  declining-balance depreciation method,  the vehicle's second year depreciation expense is: $2,812.50.

Learn more about Second year depreciation expense here:brainly.com/question/25806993

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8 0
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