Calculate the direct-material price and quantity variances

Reference no: EM13131789

Chen Enterprises purchased 67,000 pounds (cost = $616,400) of direct material to be used in the manufacture of the company's only product. According the production specifications, each completed unit requires four pounds of direct material at a standard cost of $9 per pound. Direct materials consumed by the end of the period totaled 65,500 pounds in the manufacture of 16,050 finished units. An examination of Chen's payroll records revealed that the company worked 42,000 labor hours (cost = $621,600) during the period, and specifications called for each completed unit requiring 2.6 hours of labor at a standard cost of $15 per hour. Assume that the company computes variances at the earliest point in time. Required: Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Reference no: EM13131789

Questions Cloud

Administrative expense budget : The cash disbursements for selling and administrative expenses on the August selling and administrative expense budget should be?

What factors should be considered : A concerned citizen provides resources and establishes a trust with the local government. What factors should be considered in determining which fund to report the trust activities?

What is your gross profit margin percentage : Your beginning food inventory was $26,000. You have purchased an additional $24,000 and have accepted $12,000 in transfers from other locations. In total, you sold $39,000 worth of food for the same time period. Your ending inventory is $29,000. W..

Determine the mass of precipitate (in grams) that form : Determine the mass of precipitate (in grams) that forms when 213.8 mL of 0.132 M CaCl2 solution is reacted with excess AgNO3 solution.

Calculate the direct-material price and quantity variances : Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

What is the pressure of nitrogen in the flask : If the density of N2 gas in a rigid flask is 0.243 g/L at 18 °C, what is the pressure of nitrogen in the flask if it is heated to 36 °C

What is break-even point in units for the company : What is break-even point in units for the company? What is the dollar sales volume the firm must achieve in order to reach the break-even point?

Consequences of sexually active teens : One obvious consequence teens face when they become sexuallyactive is pregnancy. Pregnancy at any age can be taxing on thebody and spirit; however, adding in a third factor-lack of maturityin most adolescents-can create a disastrous combination

Explain important information about buffers : An unknown compound X, is thought to have a carboxyl group with a pka of 2.0 and another ionizable group with a pka between 5 and 8. When 75 ml of 0.1 M NaOH was added to 100 ml of a 0.1 m solution of X at pH 2.0, the pH increased to 6.72.

User Account

All Pages