Calculate the material price and usage variances for month

Assignment Help Accounting Basics
Reference no: EM131779348

Question - Beta Company produces two products, A and B, each of which uses materials X and Y. The following unit standard costs apply:

Product A: Material X = 4 lbs @ $13, Material Y = 1 lb. @ $8.50, Direct Labor = 1/5 hr. @ $14

Product B: Material X =6 lbs @ $13, Material Y = 2 lbs @ $8.50, Direct Labor = 1/3 hr. @ $14

During November, 4,200 units of A and 3,600 units of B were produced. Also, 39,000 pounds of X were purchased at $12.40 per pound and 11,000 pounds of Y were purchased at $8.70 per pound; all of these materials (but no other materials) were used for the month's production. This production required 2,025 direct labor-hours at $13.60 per hour.

Questions -

a) Calculate the material price and usage variances for the month.

b) Calculate the labor rate and efficiency variances for the month.

c) How would your answers to (a) and (b) change if you had been told that November's planned production activity was 4,000 units of A and 4,000 units of B?

d) How would your answers to (a) and (b) change if you had been told that November's sales were 4,000 units of A and 3,500 units of B?

Reference no: EM131779348

Questions Cloud

Prepare the stockholders equity section at december : The preferred stock was issued for land having a fair market value of $296,000. Prepare the stockholders' equity section at December 31, 2011
What are contraction risk and extension risk : Why would a pass-through with a WAM 350 months be an unattractive investment for a savings and loan association?
Influences on sexuality and sexual orientation : Straight, lesbian, gay, bisexual, transgendered, and questioning-when it comes to sexuality and sexual orientation, what influences individuals the most?
What are the pros and cons of flextime policy : What are the pros and cons of a flextime policy?
Calculate the material price and usage variances for month : Beta Company produces two products, A and B, each of which uses materials X and Y. Calculate the material price and usage variances for the month
Write memo to friedman and compton highlighting any concerns : Write a brief memo to Friedman and Compton highlighting any concerns that underlie the analyses you have performed in Part 1.
Calculate the net gross margin variance directly : Determine the gross margin mix, selling price, and sales volume variances. Calculate the net gross margin variance directly
Clause includes statement about ergonomic hazards : Flexible work schedules help employees balance work and family. The OSH Act’s General Duty Clause includes a statement about “ergonomic” hazards.
Construct an amortization schedule for the given months : Without constructing an amortization schedule, what is the scheduled principal payment at the end of month 270 assuming no prepayments?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare two sets of journal entries to record investments

Prepare two sets of journal entries to record the investments by the owners, the distribution of cash to the owners

  What is the markup on variable costs needed

What is the markup on variable costs needed to obtain a target profit of $75,000?

  Plumbing company sells plumbing fixtures on terms

Acme plumbing company sells plumbing fixtures on terms of 2/10, net 30. its financial statements over the last 3 years are as follows:

  Write tax research paper

Write tax research paper about this topic including the reference: A CPA has been charged with bribing a revenue agent

  What is the net cash by operating activities

S company reported net income for 2016 in the amount of $400,000. What is the net cash by operating activities under the indirect method

  Amortization schedule-effective interest method

Prepare the journal entry DeFilippo Company would make to record this transaction. (b) Prepare an amortization schedule for the note using the effective-interest method.

  What is the expected return on the stock

The two factor model on a stock provides a risk premium for exposure to market risk of 12%, a risk premium for exposure to silver commodity prices of 3.5% and a risk free rate of 4.0%. What is the expected return on the stock?

  What is the ending balance for raw materials

You work for Thunderduck Custom Tables Inc.  This is the first month of operations. The company designs and manufactures specialty tables. What is the ending balance for raw materials? What is the ending balance for work in process? What is the endi..

  Is it credit sales returns and debit a/r

How do to record this. Is it credit Sales Returns and debit A/R

  Prepare the journal entries to record

Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts

  Define the concepts of compounding and discounting

Define the concepts of compounding and discounting.- Use future values and present values to explain how these concepts are related.

  Level of gdp remains the same

Suppose the amount the federal government collects in personal income taxes increases, while the level of GDP remains the same. What will happen to the values of national income, personal income, and disposable personal income?

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!

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