Computation of direct material quantity variance

Assignment Help Finance Basics
Reference no: EM13826208

Problem:

Dudley Industries developed the following standard costs for direct materials and direct labor for gadgets:

 

Standard quantity

Standard price

Direct materials

0.60 pounds

$25 per pound

Direct labor

0.20 hours

$18 per hour

During October, Dudley produced and sold 8,000 gadgets using 5,000 pounds of direct materials at an average cost per pound of $22.50, and 1,560 direct labor hours at an average wage of $18.20 per hour. What is the direct material quantity variance for October and what are likely causes of this variance?

Additional Information:

This question is basically belongs to Finance as well as it discusses about calculation computation of direct material quantity variance and the cause of variance.

Reference no: EM13826208

Questions Cloud

Positioning of a retail business : Positioning Of A Retail Business
Present value and customer life time value : What is the customer lifetime value of customer Peter Piper for the first three years of the customer relationship?
Report on current strategies in bakery franchising industry : Report On Current Strategies In Bakery Franchising Industry
Inventory and purchases for the months : Sorensen Corporation has provided the following information is provided for the March operating budget:
Computation of direct material quantity variance : Dudley Industries developed the following standard costs for direct materials and direct labor for gadgets:
Discuss about environmental impact on trade liberalizations : The problem belongs to Economics, particularly to Macroeconomics and the problem discusses about the environmental impact on trade liberalizations or free trade agreement.
Discuss the public policies that have been at issue : Identify and discuss the public policies that have been at issue when using these presidential powers. Have presidential powers evolved over time, or were they a result of a major event. Explain in detail.
Essay on paradox of structure : This problem related to Management and it's an essay on Paradox of Structure. Paradox of structure is a mental tool used to crack some of the difficult problems in real life. A practical example has been given to explain how the concept of paradox..
Communication plan for a fast food company : Communication Plan For A Fast Food Company

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of annual depreciation

Computation of Annual Depreciation and Book Value at the end of life of the equipment and classified as seven-year property under MACRS

  What are the primary limitations on the extent

What are the primary limitations on the extent to which insurance can reduce the risks faced by a corporation?

  Prepare a monthly cash receipts schedule for the firm for

simpson glove company has made the following sales projection for the next 6 months all sales are credit salesmarch

  Important decisions on good assumptions

As a recently promoted manager, you are learning about the importance of basing important decisions on good assumptions; you thought you would practice by thinking through some major decisions that have been made and what the assumptions that the ..

  The net cash flows of advantage leasing for the next 3

the net cash flows of advantage leasing for the next 3 years are 42000 49000 and 64000 respectively after which the

  The coupon rate of 69 percent paid annually if yield to

even though most corporate bonds in the united states make coupon payments semiannually bonds issued elsewhere often

  Describe what are the implications of the comparisons

A closed end investment company is currently selling $10 and its net asset value is $10.63.you decide to purchase 100 shares. During the year the company distributes $0.75 in dividend.

  What is the price-sales ratio

If the stock sells for $63 per share, what is the market-to-book ratio? The price-earnings ratio? If the company had sales of $4.5 million, what is the price-sales ratio?

  Which is an advantage of corporations relative to

which is an advantage of corporations relative to partnerships and sole proprietorships?a lower taxes.b harder to

  How much will jane have in her retirement account

jane stevens is 30 years old and she is reviewing her retirement plans. she currently has 20000 in a retirement

  If the annually compounded interest rate is 12 use the rule

here are two useful rules of thumb. the rule of 72 says that with discrete compounding the time it takes for an

  What is its forecasted dividend payout ratio

Portland Plastics Inc. has the following data. If it follows the residual dividend model, what is its forecasted dividend payout ratio?

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