Compute price and usage variances for materials

Assignment Help Managerial Accounting
Reference no: EM133535501

Question: At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products:

Line Item DescriptionCost
Direct materials (5 lbs. @ $4.00)$20.00
Direct labor (2 hrs. @ $15.00)30.00
Standard prime cost per unit$50.00

The actual results for the year are as follows:

Units produced: 400,000.
Materials purchased: 2,060,000 pounds @ $3.95.
Materials used: 2,100,000 pounds.
Direct labor: 825,000 hours @ $14.85.

1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.

material price variance = $

material usage variance = $

2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.

 

Reference no: EM133535501

Questions Cloud

Describe how students can avoid academic dishonesty in work : Define plagiarism in your own words and why you think students plagiarize? Describe how student can avoid academic dishonesty in group work or as an individual?
What you believe to be the function of stonehenge : Briefly discuss what you believe to be the function of Stonehenge. Mention a contemporary (20th-21st century) monument that serves a similar function.
Create ethical and moral issues for healthcare organizations : Create ethical and moral issues for healthcare organizations. Choose and identify an issue that may create ethical and moral issues for a faith-based
What type of risk analysis would you incorporate : What type of risk analysis would you incorporate into your analysis? How reliable are these analyses?
Compute price and usage variances for materials : Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.
What are two fundamental theories of cognitive development : What are the two fundamental theories of cognitive development? Explain them briefly and make a comparison between the two. Which do you consider more correct?
What is the amount of materials used during the month : Garcia company reports beginning raw materials inventory of $862 and ending raw materials inventory of $724. If the company purchased $3,717 of raw materials
How might these campaigns be tailored to specific groups : How does Disney+ strategically leverage its extensive content portfolio, including the appeal of iconic franchises like Star Wars and Marvel, to not only differ
What physicalist pledge and how does it relate to vitalism : What was the Physicalist Pledge and how does it relate to vitalism (i.e. what is vitalism)? Name two of the people who took the physicalist pledge.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is legal action policy

What is legal action policy ? If the outstanding debt is greater than always turn over to legal action when the debt becomes days past due

  What would be the amount of loss per unit

What is the amount of loss (profit) per unit at the $404.55 selling price per unit for units sold to SC? What would be the amount of loss (profit) per unit

  What system might laze-away test laboratories use

To improve upon its costing system, what system might Laze-Away Test Laboratories use instead of the simple costing system?

  How much is your investment worth after four years

The effective rate of return in 2016 was 7.2% but in 2017, the effective rate of return was -0.6%. How much is your investment worth after four years

  Prepare a partial balance sheet to show the presentation

Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. Arrow Construction Company entered into three-year construction

  Explain how fixed manufacturing overhead costs

Explain how fixed manufacturing overhead costs are shifted from one period to another under absorption costing.

  Compute the increase or decrease in income from closing

Assuming that the strikes continue for two months, compute the increase or decrease in income from closing the plant. Would recommend that Nicholas Company

  What recommendation should be made to the controller

What recommendation should be made to the controller. Prepare a monthly cash budget and supporting schedules for September, October, and November.

  Find for the unit cost transferred to finished goods

Find for the unit cost transferred to finished goods if the 3,000 units were lost at the end of processing but were considered abnormal.

  Write a report for the strategic management committee

Write a report for the Strategic Management Committee of Jupiter Australasia recommending whether to take up the option to upgrade the production

  Create a materials purchases budget for souvenirs

Sales price for souvenirs will be $1.75 each. All sales will be in cash. Create a materials purchases budget for souvenirs

  Should the higher-quality components be used and why

Total fixed expenses are $35,000 per month, and the company is selling 1,600 drones per month. Should the higher-quality components be used?

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