Solution-Calculate September direct material efficiency

Calculate September direct material efficiency variance

Reference no: EM132446705

Question - Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2019, AVO estimated the following standard costs for one of their most well-loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.

	Budgeted quantity	Budgeted price
Direct materials	1.45 pounds	$7.15 per pound
Direct labor	0.25 hours	$14.00 per hour

During September, AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 280 direct labor hours at an average wage of $14.25 per hour. Also, state if the variance is favorable or unfavorable for each answer below.

1. Calculate September's direct material flexible-budget variance?

2. Calculate September's direct material price variance?

3. Calculate September's direct material efficiency variance?

Reference no: EM132446705

Questions Cloud

Facilitate the growth of km practices : How would you, as a CEO of a manufacturing firm, facilitate the growth of KM practices within your organization?

Examine how your interpersonal relationships differ : Examine how your interpersonal relationships differ depending on the context of the relationship. You will examine two of your specific interpersonal

Attracting advertising from small companies : Which online and strategy is superior for attracting advertising from small companies? For attracting advertising from large companies? Defend your position.

How firm might have bringing out a new product or service : Select a problem that a firm might have bringing out a new product or service and discuss how the firm could overcome that problem.

Calculate September direct material efficiency variance : AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00. Calculate direct material efficiency variance

How to understand the technology needs of HSK : What information do you-the MobiLogics salesperson-need in order to fully understand the technology needs of HSK? Following the ADAPT methodology for needs

Discuss a small health care organization : Give information that markets the service or product while leveraging the provider's education, credentials, certifications, fellowships, and professional

Consider pregnancy in the hiring process : If a company cannot consider pregnancy in the hiring process, then how can a person determine whether they were not hired for the reason or for another reason?

What is operating income : Odilon Company makes a household appliance with model number X500. What is operating income for 2018? What is operating income for 2019

User Account

All Pages

Calculate September direct material efficiency variance

Reference no: EM132446705

Reference no: EM132446705

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT