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Yanka [14]
3 years ago
9

Bonita Industries planned to use 1 yard of plastic per unit budgeted at $101 a yard. However, the plastic actually cost $100 per

yard. The company actually made 4600 units, although it had planned to make only 3800 units. Total yards used for production were 4660. How much is the total materials variance?
Business
1 answer:
Setler [38]3 years ago
3 0

Answer:

total materials variance is  $1400 Unfavorable

Explanation:

given data

budgeted = $101

actually cost = $100 per yard

company actually made =  4600 units

planned to make = 3800 units

Total yards used for production =  4660

to find out

How much is the total materials variance

solution

we know that company made 4600 so 4600 yards should be use of material but here actually used 4660 yards

so materials quantity variance  is = 60 ×  $100 = $6000 Unfavorable

material more used

and

here materials bought less than standard price

so that we can say, materials price variance is favorable

so 4600 units should used materials costing =  4600 × $101

initial estimates materials costing = $464600

and

Actually 4600 use materials costing = 4600 ×100 = $460000

so

materials price variance = $464600 - $460000 = 4600 Favorable

and

total materials variance = $4600  - $6000  = -1400

so total materials variance is  $1400 Unfavorable

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Answer: a. Accounts Receivable

Explanation:

The Direct Write-off method is usually used by businesses where Uncollectible Receivables are not common. This way when it does occur, they simply debit the Bad Debts accounts and credit the Accounts Receivables to show the event.

This method of Accounting violates the Matching Principle under the Accrual basis because it usually does not recognize bad debts in the same period that the inventory was sold. It only records bad debts when they are declared which could be periods afterwards.

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3 years ago
When something is grown and harvested in the same country it is distributed in, it can be considered what?
Vinvika [58]

Answer:

domestic

Explanation:

In business, domestic refers to the home country of the producer or consumer. The domestic market is the market within the borders of the seller's country.  Domestic contrasts with international, which refers to beyond the borders of a country.

Products that are produced and distributed within the country are domestic products. They are often referred to as local products. Domestic goods become exports if sold outside the borders of their country of origin.

5 0
2 years ago
What form of money has been used the longest and over the widest
lianna [129]

Answer:

the Cowry Shell

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However, alcohol and cattle have never served as a general means of exchange, only on a few occasions used as a trade by barter. While gold can be remade in a less original version using less expensive metals and painting.

Hence, in this case, the right answer is THE COWRY SHELL

4 0
3 years ago
The following data relate to direct materials costs for November: Actual costs 4,700 pounds at $5.40 Standard costs 4,500 pounds
Vera_Pavlovna [14]

$2,820 favorable

Calculation to determine direct materials quantity variance

Using this formula:

Direct materials price variance = (Actual materials cost per lb. - Standard materials cost per lb.) × Actual quantity lb

Direct materials price variance = ($5.40 - $6.00) × 4,700 lbs.

Direct materials price variance = (-$0.60) × 4,700 lbs.

Direct materials price variance = $2,820 favorable

Therefore the direct materials price variance is $2,820 favorable.

Direct material costs:

are the costs of raw materials or parts that go directly into producing products. For example, if Company A is a toy manufacturer, an example of a direct material cost would be the plastic used to make the toys.

Why is direct materials important?

Direct materials is an important concept in throughput analysis, where throughput is the revenue generated by a product sale, less all totally variable costs. In most situations, the only totally variable costs associated with a product are its direct materials.

What do you mean by actual cost?

In accounting, Actual Cost refers to the amount of money that was paid to acquire a product or asset. This could be the historical, past, or present-day cost of the product

What do you mean by standard cost?

A standard cost is the budgeted cost of a regular manufacturing process against which actual costs are compared. Of course, if a new product, service, or process is to be carried out, the initial standard costs will have to be estimated.

Learn more about direct costs:

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6 0
1 year ago
Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $3
Svetllana [295]

Answer:

Puffin’s E & P after taking into account the distribution of the car is $6,000.

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Therefore, Puffin’s E & P after taking into account the distribution of the car is $6,000.

5 0
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