User Account

All Pages

Why might monore calculate direct materials price variances

Assignment Help Managerial Accounting
Reference no: EM132572135

The Monroe corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor.

Direct materials: 10 lb. At Rs 4.50 per lb. Rs. 45.00

Direct manufacturing labor: 0.5 hour at Rs. 30 per hour. 15.00

The number of finished units budgeted for January 2020 was 10,000 ; 9,850 units were actually produced.

Actual results in January 2020 were as follows :

Direct materials : 98055 lb. used

Direct manufacturing labor: 4900 hours Rs. 154,350

Assuming that there I no beginning inventory of finished units.

During the month materials purchased amounted to 100,000 lb. ,at a total cost of Rs. 465,000.

Input price variances are isolated upon purchase . Input-efficiency variances are Isolated at the time of usage .

Required

Question 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor.

Question 2. Prepare journal entries to record the variances in requirement 1.

Question 3. Comment on January 2020 price and efficiency variances of Monore corporation.

Question 4. Why might Monore calculate direct materials price variances and direct materials efficiency variances with reference to different points in time ?

Reference no: EM132572135

Questions Cloud

Evaluate the two projects and advise the company management : Evaluate the two projects and advise the company's management on which of them to undertake if you apply the Net Present Value appraisal technique
Data governance involves the supervision and monitoring : Data governance involves the supervision, monitoring, and control of an organization's data assets. how you will obtain resources and cooperation.
Prepare appropriate journal entries for each relevant event : Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Prepare appropriate journal entries for each relevant event
What are the common components of a robot : What is a Robot and what are the common components of a Robot? Describe briefly two of the common components of a Robot. 300 words, 2 references.
Why might monore calculate direct materials price variances : Why might Monore calculate direct materials price variances and direct materials efficiency variances with reference to different points in time ?
Why is there a need to properly account a company inventory : Why is there a need to properly account a company's inventory? Why you think the proper recording of the amount of inventories
Explore an artwork : Explore an artwork in more depth to consider the context in which it was created. Choose any painting
How management accounting may help in directing attention : A group of doctors operates a joint surgery. Explain how management accounting may help in directing attention , keeping the score or solving problems.
Right network to conduct number of business functions : The business owner needs to develop the right network to conduct a number of business functions including implementing email marketing and e-commerce,

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is the number of professional models sold at breakeven

What is the number of professional models sold at breakeven? Xeller Company makes electronic keyboards. The practice model price is $220

  Prepare a contribution-format income statement

prepare a contribution-format income statement for each case, enter the known data, and then compute the missing items - What is the companys margin of safety

  What conditions should management force a selling division

Under what conditions should management force a selling division to sell to an internal division, rather than to an outside customer?

  How many units must be produced and sold

Assuming that the product is sold for $100 per unit, how many units must be produced and sold if the operating income is to be $25,000?

  Calculate the variable overhead spending variance

Calculate the variable overhead efficiency variance and indicate whether it is favourable or unfavourable. Calculate the variable overhead spending variance

  How much is budgeted net income for may

Assuming an income tax rate of 30%, how much is budgeted net income for May?

  Demonstrate what is the direct materials quantity variance

Demonstrate What is the direct materials quantity variance? Yama Industiers has collected the data for its Thunderbolt line of products

  What the sales volume variance for vmoh is

Actual variable manufacturing OH = $290,000; Master Budget variable manufacturing OH = $256,000. The sales volume variance for VMOH is

  Jeffrey vaughn president of frame-it company was just

jeffrey vaughn president of frame-it company was just concluding a budget meeting with his senior staff. it was

  What are the use of computers in budgeting

What are the use of computers in budgeting? What is Continuous budgeting and how is it used? What are the two major types of budgeting?

  Why are separate price and quantity variances computed

What is meant by the term management by exception? Why are separate price and quantity variances computed? Who is generally responsible for the materials price variance? The materials quantity variance?

  What potential problems are created by the larger batch size

Calculate the additional profit associated with running larger batch sizes through the powder-coating process.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd