User Account

All Pages

Calculate the following variances

Assignment Help Accounting Basics
Reference no: EM13113367

Question: Expected production (units) 13,000

Standard DML hours per unit 5
Standard DML rate per hour $24
Standard pounds of DM usage per unit 4
Standard DM price per pound $12

Actual
Units produced 12,000
DML hours worked 62,000
Total cost of DML $1,240,000
Pounds of DM purchased 54,000
Total cost of DM purchased $702,000
Pounds of DM used 47,000

a) Calculate the following variances:
Direct manufacturing labor rate variance
Direct manufacturing labor usage variance
Direct materials price variance (how we did it in the chat session)
Direct materials usage variance


b) Explain what each of the calculated variances imply about the firm’s operations. Be specific!
Direct manufacturing labor rate variance
Direct manufacturing labor usage variance
Direct materials price variance
Direct materials usage variance

Reference no: EM13113367

Questions Cloud

Hypothesis testing-minor automobile accidents : A number of minor automobile accidents occur at various high-risk intersections in Teton County despite traffic lights. The Traffic Department claims that a modification in the type of light will reduce these accidents.
Discuss how private-sector and public-sector efforts : Discuss how private-sector and public-sector efforts and institutions that promote sustainable development can affect both the short- and long-term success of the tourism sector in the country or location of your choosing.
Type of neuron in the body : Where is the metabolic and regulatory function in a neuron and happens at?  What is the most common type of neuron in the body?
Record the transactions in the journal : 1. Record the transactions in the journal. 2. Prepare the statement of shareholders' equity for 20XX.
Calculate the following variances : Calculate the following variances:  Direct manufacturing labor rate variance,  Direct manufacturing labor usage variance,  Direct materials price variance (how we did it in the chat session),  Direct materials usage variance
Journalize the entry to record the payroll for the week : Journalize the entry to record the payroll for the week of December 10. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
What will jackson’s cash collections from sales : Assume Jackson’s cash sales remain steady at $25,000 each quarter, credit sales are $600,000 in quarter 1, $520,000 in quarter 2, $480,000 in quarter 3, and $650,000 in quarter 4. What will Jackson’s cash collections from sales be for the quarter 3?
How responsibility centers are used for budgeting process : From your text and at least one scholarly source, research information on responsibility centers. Explain how responsibility centers are used for the budgeting process
Fifo to lifo questions : Fill in each of the blanks below with one of these: larger, smaller, unchanged, or insufficient (information given to answer question). Several years after the switch from FIFO to LIFO:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculating goodwill in transaction

Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Got Em Co. had operating income of $64,300 and net assets with a fair market value of $184,000. Ta..

  Tabular analysis of transactions

A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained.

  Tax consequences of incorporation

Write down a memo to Stacey describing the tax consequences of incorporation. As part of your memo analyze the possibility of having the corporation issue common and preferred stock and debt for shareholders’ property and money.

  Computing material price and quantity variances

Henry's is a chain of 45 coffee shops. The standard amount of ground coffee per cup is .75 ounces. During the month of October, the company sold 320,000 cups of coffee (reported via electronic cash registers), and the 45 shops reported using 15,80..

  Calculate the inflation-adjusted principal at the beginning

Calculate the inflation-adjusted principal at the end of the second six months (on December 31, 2011), and the coupon payment to the investor for the second six-month period is the inflation-adjusted principal

  Passive loss and research tax questions

Discuss the factors to consider when determining eligibility for the R&D Tax Credit. Discuss your reaction to the president's approach of R&D deduction related to the software training costs.

  Entries which reflecting the purchase

Give Sapling's entries reflecting the purchase of wood chipper. Give Fir's entries reflecting the sale of wood chipper.

  Difference between tax refund and tax benefit

What are the chances that a company will have 20 years of losses to actually use a loss carryforward (and still be in business)? How do accounting principles support holding an asset on the balance for this long?

  Estimating the contract cost

During the year, job 123 a firm fixed price contract for the production of 3,000 raincoats will be started and completed. Estimate the contract cost.

  Tax research-non-liquidating distributions

Analyze how corporations treat non-liquidating distributions and determine the most likely mistake(s) the client could make that would result in an IRS audit. Advise the client on how to avoid the mistake(s) and how you would respond to the IRS in..

  Equation method for computing eoq

For each of the following independent cases, use the equation method to compute the economic order quantity.

  Accounting rate of return

What is the internal rate of return? What is the accounting rate of return based on the initial investment? What is the payback period?

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