How much greater or less than the cost that was incurred

Assignment Help Accounting Basics
Reference no: EM13135094

Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 4,000 chopping boards using 11,000 board feet of hardwood. The hardwood cost the company $18,700.

The company's standards for one chopping board are 2.5 board feet of hardwood, at a cost of $1.80 per board foot.

Required:
1a.
According to the standards, what cost for wood should have been incurred to make 4,000 chopping blocks?
1b.
How much greater or less is this than the cost that was incurred?
2.
Break down the difference computed in (1) above into a materials price variance and a materials quantity variance.

Reference no: EM13135094

Questions Cloud

Calculate the empirical formula for naphthalene : Combustion analysis of naphthalene, a hydrocarbon used in mothballs, produced 8.80 g CO2 and 1.44 g H2O. Calculate the empirical formula for naphthalene?
Which projects should the firm undertake : Assume the expected return on the market portfolio is 15% and the riskless return is 9%. Also assume that all of the projects listed here are perpetuities with annual cash flows (in $) and betas as indicated. None of the projects requires or precl..
Morning and afternoon test : Anyone who failed the test must take a retest. Since a greater percentage of students who took the morning test failed the test than students who took the afternoon test, more of Orlof's morning history students than afternoon history students wil..
Define cantilever beam with maximum tensile strength : Cantilever Beam with maximum tensile strength. A cantilever beam is to be made using a symmetrical I section beam. The cantilever is to carry a load of 40kN at a distance 2.5m from the fixed end. The situation allows for a depth of I beam to be no..
How much greater or less than the cost that was incurred : Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 4,000 chopping boards usin..
What is the heat of combustion for cyclohexane : The heat of reaction for the combustion of cyclohexane, C6H12, is 936.8 kcal/mol. What is the heat of combustion for cyclohexane in kcal/gram?
Define the maximum take-off mass of an airbus : The maximum take-off mass of an Airbus A380 passenger jet is about 600 000 kg. The lift is provided by the wings, which have a total area of 845 m2.
What is the temperature of the resulting mixture : 5.0 g of H2O at 23.0 oC is added to 100.0 g of H2O at 67.5 oC. What is the temperature of the resulting mixture
Relationship between department managers and union represent : Analyze the relationship between department managers and union representatives. Recommend a strategy to create an environment of collaboration between the two groups. Provide support for your recommendation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Standard unqualified report for audit of a private company

There are five conditions that must be met before an auditor can issue a standard unqualified report for the audit of a private company. Please discuss each of these five conditions.

  Corporations taxable income after drd

Included in this amount is dividend income of $60,000 from another corporation in which the taxpayer owns 90 percent of its stock outstanding. The corporation's taxable income (loss)after the DRD is?

  Maximum price pay for the bond

If you require a 7 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

  Viewpoint of foreign subsidiary shareholders

As a potential investor in the shares of multi-national enterprises, which inflation method, restate-translate or translate-restate, would give you decision needs? Which information set is best from the viewpoint of foreign subsidiary's shareholde..

  Total controllable cost variance

A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total contro..

  Find the amount of depreciation expense for 2003 would be

A factory machine was purchased for $25,000 on January 1, 2003. It was estimated that it would have a $5,000 salvage value at the end of its 5-year useful life.

  Adjusting entry for uncollectibles

Wecker Company's year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5% of accounts receivable. a) Prepare the Decemb..

  Finding unit sales price

At Flint Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:

  Determine the balance in the finished goods inventory

Determine the balance in the Finished Goods Inventory and compute the cost of goods manufactured for November

  Contingency that should be accrued

Which of the following is a contingency that should be accrued?

  Double declining-balance depreciation method

Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost $800,000. The estimated residual value of the building is $50,000 and it has an expected useful life of 25 years.

  Tariff and quota-impact of trade surplus-trade deficit

What is the difference between a tariff and a quota? What is the impact of a trade surplus?

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