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garik1379 [7]
2 years ago
6

Direct Materials Variances Bellingham Company produces a product that requires nine standard pounds per unit. The standard price

is $8.5 per pound. If 2,100 units used 18,100 pounds, which were purchased at $8.93 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance
Business
1 answer:
Amanda [17]2 years ago
4 0

Answer:

The correct answer is:

(a) -7783

(b) 6800

(c) -983

Explanation:

According to the given values in the question:

(a)

The price variance will be:

= (8.5-8.93)\times 18100

= -0.43\times 18100

= -7783 (Favorable)

(b)

The quantity variance will be:

= (2100\times 9-18100)\times 8.5

= (18900-18100)\times 8.5

= 800\times 8.5

= 6800 (Unfavorable)

(c)

The cost variance will be:

= (2100\times 9\times 8.5)-(18100\times 8.93)

= (160650)-(161633)

= -983 (Favorable)

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Instructions are below.

Explanation:

Giving the following information:

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The following bond investment transactions were completed during 2016 by Starks Company:
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Answer:

31st Jan 2016

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Dr Interest Receivable    375

Cr Cash                            75,375

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* working note: Bond proceed = 75 x 1,000 = 75,000; Interest receivable = 75,000 x 6% x 30/360 = 375)

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Dr Cash                             2,250

Cr Interest Income           1,875

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(to record interest receipt on bonds holding, in which 5 months of it ( 75,000 x 6% x 5/12 is recorded as Income, the other one is recorded as collection of Income earned by the bond's seller)

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Cr Interest income                        350

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Cr Interest Income                      1,200

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Explanation:

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Answer:

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Answer:

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I hope it is helpful to you

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