Computing materials variances

Assignment Help Accounting Basics

Reference no: EM1365261

Medical Instruments produces a variety of electronic medical devices. Medical Instruments uses a standard cost system and computes price variances at the time of purchase. One product, a thermometer, measures patient temperature orallt. It requires a silver lead with a standard length of 5 inches per thermometer. To make the leads, hollow silver tubing is purchased at a standard price of $4 per inch, cut into the required length, and then assembled into the thermometer.

There is no silver tubing in inventory when a batch of 200 thermometers was scheduled for production. Twelve hundred inches of silver tubing were purchased for $4,680 by the purchasing department for this 200-unit batch of thermometers, and 1,100 inches were used in production.

Compute the materials variances for silver tubing and comment on their meaning.

Reference no: EM1365261

Questions Cloud

Benefits of fish bone diagram and retrospective surveys : Benefits of Fish Bone Diagram and Retrospective Surveys - Identify two metrics that are important for you when working on a project and justify your answer.

Evalute one opportunity for kuddler fine foods : Evalute one opportunity for Kuddler Fine Foods that requires a business management decision.

Supervisors that have power needs : What are the benefits from having a supervisor with a high need for achievement, affiliation, or power and how does each types help with workplace affairs?

Describe a procedure to investigate the factors : What is the acceleration of the crate.Describe a procedure to investigate the factors.

Computing materials variances : Medical Instruments produces a variety of electronic medical devices. Compute the materials variances for silver tubing and comment on their meaning.

Determine the minimum number of days of float time : The bank is willing to lend the company enough to finance its working capital needs under a $10 million revolving credit arrangement at a base rate of 12 percent with a 3/8 percent commitment fee on the unused balance.

Financial understanding of their organization : Financial understanding of their organization - Why is it essential for all managers to have a financial understanding of their organization?

Elucidate which job affords you the highest purchasing power : If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, elucidate which job affords you the highest purchasing power of the bundle of goods in the price index.

Question about public speaking : Question about Public Speaking - Create a six sentence speech on eating healthy using the principles of a good persuasive speech.

User Account

All Pages