Calculate the materials price and quantity variance

Assignment Help Accounting Basics
Reference no: EM133099025

Question - New Look Inc manufactures a single product. The company uses a standard costing system and established the following standard for one unit of product. Variable manufacturing overhead cost is assigned using labor hours.

 

Standard Quantity per unit

Standard Price or Standard Rate

Standard Cost per unit

Direct Material

8 pounds

$1.80 per pound

$14.40

Direct Labor

0.25 hours

$8.00 per hour

$2.00

Variable Manufacturing overhead

0.25 hours

$5.25 per hour

$1.3125

Additional Information:

1. The company produced 19000 units during the month.

2. A total of 160000 pounds of material were purchased at $304,000. At the end of the month, 17500 pounds of material remained in inventory.

3. During the month 5000 direct labor hours were worked at a rate of $7.56 per hour.

4. The variable manufacturing overhead costs during the month totaled $30000.

Required -

1. Calculate the materials price and quantity variance for the month?

2. Calculate the labor rate and labor efficiency variance for the month?

Reference no: EM133099025

Questions Cloud

What is the planning p : What is the Planning P, and how is it used by the Incident Commander?
Describe a technology trend : Describe a technology trend that may impact a target career in business.
Foster ethical values and encourage ethical behaviour : Does it pay to be good? What can an organization do to foster ethical values and encourage ethical behaviour of its people?
What made it a complex project : Consider a project that you have been involved with or aware of that you consider to be highly complex. What made it a complex project? Did it succeed? Why, or
Calculate the materials price and quantity variance : The variable manufacturing overhead costs during the month totaled $30000. Calculate the materials price and quantity variance for the month
Strategies affect firm strategic competitiveness : How would the board's increased involvement in the selection of strategies affect a firm's strategic competitiveness?
Build solid and well integrated km platform : Based on the individual assignments "Part one", consolidate all work to combine all functions needed to build a solid and well integrated KM platform.
Compute the firm net operating income and net income : In 2016, the Allen Corporation had sales of $61 million, total assets of $40 million, Compute the firm net operating income and net income
Act in accordance with societal expectations : Why should Joe Fresh be expected to act in accordance with societal expectations?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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