User Account

All Pages

Calculate all cost variances for direct materials

Assignment Help Cost Accounting
Reference no: EM132548703

The production manager of Pippin Company exercises management by exception by reviewing materials usage and labor efficiency variances incurred during any given week. His decision rule is that any variance that is at least $5,000 or at least 10% of standard cost whichever is smaller, should be investigated to determine the underlying cause.

During last week, the company's operating performance included the following.

Units produced: 5,000

Direct material used: (21,600 lbs @ $18.20)

Direct Labor hours worked: (8,300 hours@ $12.30)

Standard cost specifications for each unit produced are:

Direct materials: 4lb at $18.00 each

Direct labor: 1.6 hours @ $12.30 each

Required:

Question A. Calculate all cost variances for direct materials and direct labor

Question B. Should the production department manager investigate either of the variances for which he is responsible?

Reference no: EM132548703

Questions Cloud

Organizational variation provides the best environment : Which organizational variation provides the best environment for taking advantage of the SOA framework? What makes this variation advantageous?
The four variations of the model : Briefly describe the company and recommend which type of model would you recommend and why.
Briefly explain how the cost accounting tools can add value : Briefly explain how the cost accounting tools can add value to a struggling product segment in a company? Activity-based cost management
What is soa business strategy and roadmap : Assessing the Organization's SOA Maturity and Developing Your Company's SOA Business Strategy and Roadmap.
Calculate all cost variances for direct materials : Should the production department manager investigate either of the variances for which he is responsible? Calculate all cost variances for direct materials
Demonstrate what is cost per unit : What is cost per unit? Accounting records show 1,500 units in the finished goods inventory with a value of $37,500 at the end of 2019
Explain the monetary policy tool : Assuming the government is selling a government bond to fight COVID-19, and at the same time, ASHANTI Goldfields Company
Health care costs are out of control in united states : Discuss the following statement: "Health care costs are out of control in the United States, and increasing conflicts between employers and employees
Discuss the making decisions around dropping products : Find and Discuss the important considerations when making decisions around dropping products or departments that are less profitable than desired.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Prepare a single-step income statement for the year ended

Prepare a single-step income statement for the year ended December 31, 2012 - Brisky Corporation

  How to record journal entry for the bond issuance on january

Assume that on January 1, 2011, Weber Company issues bonds with a face value of $300,000 that pay 10 percent interest, semiannually (5 percent per period) and mature in 10 years. Assume that the market interest rate at the date of issuance is 8 pe..

  Identify three primary advantages of using costing method

Identify the three primary advantages and three primary disadvantages of using the costing method (LIFO, FIFO, and weighted average) that is used to record inve

  Develop a reasonable way to share the housekeeping costs

Develop a reasonable way to share the housekeeping costs. How should they be allocated? Justify your reasoning and explain.

  Statement of cash flows direct method

Prepare the journal entries for the year ended 30 June 2012 to account for the above transactions.

  Analyse principles and trends in performance

Performance Management and Control - Identify and critically analyse principles and trends in Performance Measurement and Control and Determine the different budgeting techniques and critically evaluate their use in short term decision making

  What bid should you present to your boss

Calculate the total bid if you base your calculations on the standard cost sheet assuming a cost plus 15% government contract and calculate the total bid if you base your calculations on the September 15, 2005, invoice assuming a cost plus 15% gover..

  What was the firms net income

What was the cash flow from operating activities and what was the firm's net income

  Define what is her taxable income

The plan will pay her $1,500 per month based on her life expectancy of 22 years. In 2007, Myra receives twelve $1,500 payments. What is her taxable income

  How much can clark claim as a child care credit in 2013

Clark, a widower, maintains a household for himself and his two dependent preschool children. For the year ended December 31, 2013, Clark earned a salary of $36,000. He paid $3,500 to a housekeeper to care for his children in his home.

  Calculation of materials and labor variances

Calculation of Materials and Labor Variances, Fritz Corp. manufactures and sells a single product

  Journalize partnerships entry to record moss investment

Record partners original investment - Journalize the partnerships entry to record Moss's investment.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd