Compute the total-price and quantity variances for materials

Assignment Help Financial Accounting

Reference no: EM131286282

Ceelo Company purchased (at a cost of $10,200) and used 2,400 pounds of materials during May. Ceelo's standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5 per pound. Production in May was 1,050 units.

Instructions

Compute the total, price, and quantity variances for materials.

Assume Ceelo also had an unfavorable labor quantity variance. What is a possible scenario that would provide one cause for the variances computed in (a) and the unfavorable labor quantity variance?

Prepare a variance report.

Reference no: EM131286282

Questions Cloud

Line of credit has been established at the bank : Lewis is a merchandising company. Each month they buy the inventory that they expect to sell the next month. Then they pay for it 50% in the month of purchase and 50% the next month. The purchase price is $50. Prepare a cash budget for the first quar..

Determine total comprehensive income : Matilda Company reported the following amounts (in euros) in 2015: Net income, €150,000; Unrealized gain related to revaluation of buildings, €10,000; and Unrealized loss on non-trading securities, €(35,000). Determine Matilda’s total comprehensive i..

Effective interest method-prepare bond amortization schedule : Metlock Co. is building a new hockey arena at a cost of $2,420,000. It received a downpayment of $510,000 from local businesses to support the project, and now needs to borrow $1,910,000 to complete the project. Prepare a bond amortization schedule u..

The amount of net income or net loss was : If beginning capital was $28,000, ending capital is $65,000, and the owner's withdrawals were $31,000, the amount of net income or net loss was: The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which repres..

Compute the total-price and quantity variances for materials : Ceelo Company purchased (at a cost of $10,200) and used 2,400 pounds of materials during May. Ceelo's standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5 per pound. Production in May was 1,050 units. Compute the to..

Auditor and the audit committee at end of audit engagement : Which of the following is not a typical communication between the auditor and the audit committee at the end of an audit engagement?

What is the proper adjusting entry : Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be: What is the proper adjusting entry at June 30, the end of the fiscal year, based on a supplies account balance before adjustment, $10,000, and..

What is the normal balance of any asset account : A increases recorded by credits to a revenue or a drawing account? The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a: Is Salaries Expense an asset account? Is Accounts ..

Statements concerning review analytical procedures : Which of the following statements concerning review analytical procedures is false?

User Account

All Pages