8-781
243.
Canevari Corporation makes a product that uses a material with the following standards:
Standard quantity
3.0
kilos per unit
Standard price
$2.00
per kilo
Standard cost
$6.00
per unit
The company budgeted for production of 1,300 units in April, but actual production was
1,200 units. The company used 3,750 kilos of direct material to produce this output. The
company purchased 4,100 kilos of the direct material at a total cost of $8,610. The direct
materials purchases variance is computed when the materials are purchased.
The materials price variance for April is:
8-782
244.
Blaster Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52,
which has a standard cost of $1.45 per unit. During May, the company purchased 12,000
units of the part for a total of $18,000. Also during May, the company manufactured 3,000
radios, using 10,000 units of part XBEZ52. The direct materials purchases variance is
computed when the materials are purchased.
During May, the materials price variance for part XBEZ52 was:
8-783
245.
Blaster Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52,
which has a standard cost of $1.45 per unit. During May, the company purchased 12,000
units of the part for a total of $18,000. Also during May, the company manufactured 3,000
radios, using 10,000 units of part XBEZ52. The direct materials purchases variance is
computed when the materials are purchased.
During May, the materials quantity variance for part XBEZ52 was:
246.
The following materials standards have been established for a particular product:
Standard quantity per
unit of output
1.9
grams
Standard price
$18.00
per
gram
The following data pertain to operations concerning the product for the last month:
Actual materials
purchased
5,800
grams
Actual cost of
materials purchased
$108,460
Actual materials used
in production
5,200
grams
Actual output
2,700
units
The direct materials purchases variance is computed when the materials are purchased.
What is the materials price variance for the month?
8-785
247.
The following materials standards have been established for a particular product:
Standard quantity per
unit of output
1.9
grams
Standard price
$18.00
per
gram
The following data pertain to operations concerning the product for the last month:
Actual materials
purchased
5,800
grams
Actual cost of
materials purchased
$108,460
Actual materials used
in production
5,200
grams
Actual output
2,700
units
The direct materials purchases variance is computed when the materials are purchased.
What is the materials quantity variance for the month?
248.
Imrie Corporation makes a product that uses a material with the quantity standard of 9.5
grams per unit of output and the price standard of $5.00 per gram. In January the company
produced 2,900 units using 26,940 grams of the direct material. During the month the
company purchased 28,900 grams of the direct material at $4.90 per gram. The direct
materials purchases variance is computed when the materials are purchased.
The materials quantity variance for January is:
249.
Imrie Corporation makes a product that uses a material with the quantity standard of 9.5
grams per unit of output and the price standard of $5.00 per gram. In January the company
produced 2,900 units using 26,940 grams of the direct material. During the month the
company purchased 28,900 grams of the direct material at $4.90 per gram. The direct
materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
250.
Melrose Corporation makes a product that uses a material with the following standards:
Standard
quantity
8.4
pounds per
unit
Standard price
$6.00
per pound
Standard cost
$50.40
per unit
The company budgeted for production of 5,800 units in September, but actual production
was 5,900 units. The company used 50,210 pounds of direct material to produce this
output. The company purchased 55,100 pounds of the direct material at $5.80 per pound.
The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for September is:
251.
Melrose Corporation makes a product that uses a material with the following standards:
Standard
quantity
8.4
pounds per
unit
Standard price
$6.00
per pound
Standard cost
$50.40
per unit
The company budgeted for production of 5,800 units in September, but actual production
was 5,900 units. The company used 50,210 pounds of direct material to produce this
output. The company purchased 55,100 pounds of the direct material at $5.80 per pound.
The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for September is:
8-791
252.
Stench Foods Corporation uses a standard cost system to collect costs related to the
production of its garlic flavored yogurt. The garlic (materials) standards for each container
of yogurt produced are 0.8 ounces of crushed garlic at a standard cost of $2.30 per ounce.
During the month of June, Stench purchased 75,000 ounces of crushed garlic at a total
cost of $171,000. Stench used 64,000 of these ounces to produce 71,500 containers of
yogurt.
The direct materials purchases variance is computed when the materials are purchased.
What is Stench’s materials price variance for June?
253.
Stench Foods Corporation uses a standard cost system to collect costs related to the
production of its garlic flavored yogurt. The garlic (materials) standards for each container
of yogurt produced are 0.8 ounces of crushed garlic at a standard cost of $2.30 per ounce.
During the month of June, Stench purchased 75,000 ounces of crushed garlic at a total
cost of $171,000. Stench used 64,000 of these ounces to produce 71,500 containers of
yogurt.
The direct materials purchases variance is computed when the materials are purchased.
What is Stench’s materials quantity variance for June?
254.
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
Standard
Quantity
Standard
Price or
Rate
Standard
Cost
Direct
materials
5 pounds
$3.60 per
pound
$18.00
Direct
labor
1.25
hours
$12.00
per hour
$15.00
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
The price variance for the direct material acquired by Jackson Industries during May is:
8-794
255.
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
Standard
Quantity
Standard
Price or
Rate
Standard
Cost
Direct
materials
5 pounds
$3.60 per
pound
$18.00
Direct
labor
1.25
hours
$12.00
per hour
$15.00
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
The materials quantity variance for May is:
8-796
256.
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
Standard
Quantity
Standard
Price or
Rate
Standard
Cost
Direct
materials
5 pounds
$3.60 per
pound
$18.00
Direct
labor
1.25
hours
$12.00
per hour
$15.00
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
The labor rate variance for May is:
8-798
257.
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
Standard
Quantity
Standard
Price or
Rate
Standard
Cost
Direct
materials
5 pounds
$3.60 per
pound
$18.00
Direct
labor
1.25
hours
$12.00
per hour
$15.00
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
The labor efficiency variance for May is:
258.
The Collins Corporation uses standard costing and has established the following direct
material and direct labor standards for each unit of the single product it makes:
• Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for July was: