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
Furkat [3]
3 years ago
14

Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube Company is a se

rvice company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 24 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 980 Actual number of quarts of oil used: 6,020 quarts Actual price paid per quart of oil: $5.10 Standard price per quart of oil: $5.05 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent. MPV $ MUV $ 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. $ 3. What if the actual number of quarts of oil purchased in June had been 6,100 quarts, and the materials price variance was calculated at the time of purchase
Business
1 answer:
Ket [755]3 years ago
8 0

Answer:

Material Price Variance=  $301 Unfavorable

Material Quantity Variance=  $283 Favorable

Total direct materials variance for oil for June $ 18 Unfavorable

Material Price Variance=  $305 Unfavorable at the time of purchase

Explanation:

Guillermo's Oil and Lube Company

Actual number of oil changes performed: 980

Actual number of quarts of oil used: 6,020 quarts

Actual price paid per quart of oil: $5.10

Standard price per quart of oil: $5.05

Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Material Price Variance= ($5.10 *6,020)-($5.05 *6,020)= $ 30702- $ 30401

Material Price Variance= $301 Unfavorable

Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance=($5.05 *6,020)-($5.05 *6.2 * 980)=($5.05 *6,020)-($5.05 *6076)

Material Quantity Variance=$ 30401-30683.8= 282.8

Material Quantity Variance=  $283 Favorable

Total direct materials variance for oil for June=$301 Unfavorable- $283 Favorable= $ 18 Unfavorable

3. Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Material Price Variance= ($5.10 *6,100)-($5.05 *6,100)= $ 31110- $ 30805

Material Price Variance=  $305 Unfavorable

You might be interested in
Assume that we are in the MM world. The beta of an all-equity firm is 1.4. Suppose the firm changes its capital structure to 40
balu736 [363]

Answer:

2.3

Explanation:

Levered Beta = Unlevered Beta x (1+D/E)

D/E = Debt-to-Equity Ratio

1.4 x (1 + 04 / 0.6) = 1.4 x 1.667 = 2.3

8 0
3 years ago
Between which two years was the greatest percentage decrease in gdp per
Alecsey [184]

the diffrence bewteen 2 and one it comes and goes like days

4 0
3 years ago
Read 2 more answers
The benefit of the beautification initiative, as suggested by the survey, is. Because the estimated benefit isless than the cost
OverLord2011 [107]

Answer:

A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. Thus, the visual appearance would For the students of the college, the visual appearance of the campus is (non-rival/rival) and (non-excludable/excludable). Thus, the visual appearance would be classified as a public good.

Suppose the college administrators estimate that the beautification initiative will cost $4,400. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 300 students, asking each of them their willingness-to-pay for the beautification project. The average willingness-to-pay, as revealed by the survey, is $11.

The benefit of the beatification initiative, as suggested by the survey, is $3,300. Because the estimated benefit is (<u>less</u>/greater) than the cost, the college administrators (should/<u>should not</u>) undertake the beautification initiative.

Explanation:

A non-rival good or service is one whose benefit is not reduced by a person's consumption and does not prevent another user from enjoying its benefit.

When a good/service is non-excludable, it is impossible to prevent non paying users from enjoying its benefit. The beautification initiative being non rival and non-excludable can therefore be seen as a public good.

The benefit of the initiative = 300 students X $11

The college has a total of 300 students with an average willingness to pay $11. Because the $3,300 the students are willing to pay is less than the cost of the initiative, the college administrators should not carry out the beautification initiative.  

5 0
3 years ago
Which of the following statements best describes accounting for a partnership?
svetlana [45]

Answer:

B. A partnership may use federal income tax rules to account for transactions in their journals and ledger accounts.

Explanation:

There is a lot of difference in accounting of normal partnership firms and that of non profit organisations.

Simply a partnership firm cannot be formed as a non profit entity.

A partnership can use any federal laws in compliance and do accounting entries in accordance with them.

The partnership equity section only contains partner's capital account as there are no retained earnings section.

Partnership's do not pay dividend, and if it does it is not limited to money.

7 0
3 years ago
DAE Parts Shop began business on January 1, 2019. The corporate charter authorized issuance of 20,000 shares of $5 par value com
andrew-mc [135]

Answer:

c. increase of $300,000

Explanation:

The autorized shares do not increase the equity of the firm. The firm generaes equity when the shares are issued. Therefore, we should consider January 2nd issuance:

12,000 common shares x $25 =   300,000 total proceeds

face value: 12,000 common x $5 = 60,000 face value

additional paid-in                           240, 000

5 0
2 years ago
Other questions:
  • Swansea Finishing produces and sells a decorative pillow for $100.00 per unit. In the first month of operation, 2,000 units were
    12·1 answer
  • In order to understand a customer's wants, a marketer must understand __________?
    14·1 answer
  • Assume that ABCO is a U.S. multinational corporation. Its foreign subsidiaries must report income in their respective countries
    12·1 answer
  • Where does the wave erosion occur and where
    14·1 answer
  • What is a demand relationship?
    10·1 answer
  • "The current philosophy among managers today is best described as transaction management."A. TrueB. False
    6·1 answer
  • The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for ind
    11·1 answer
  • Month Maintenance Machine Health Number of Shipping Units
    14·1 answer
  • What could explain why South​ Korea's gross domestic product​ (GDP) per capita increased so much faster since the 1970s than Nor
    12·1 answer
  • Question 12 of 40
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!