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The standard cost of Product B manufactured by MIT Company includes 3.40 units of direct materials at $5.60 per unit. During June, 26,700 units of direct materials are purchased at a cost of $5.45 per unit, and 26,700 units of direct materials are used to produce 7,800 units of Product B.
Compute the total materials variance and the price and quantity variances.
Total materials Variance
Materials price variance
Materials quantity variance
Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.73 and the quantity purchased and used is 26,600 units.
Taxable income for 2011 is $180 million and the tax rate is 40%. Prepare journal entry(s) to record Payne’s income taxes for 2011, assuming it is more likely than not that one-half of the deferred tax asset will ultimately be realized.
Evaluate the Chmelar Manufacturing cost. Chmelar Manufacturing Company developed the following data:
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