Quality Cabinet Company uses a standard costing system and produced 2,000 cabinets during May. The standard cost of wood is $20 per linear foot, and the standard quantity for each cabinet is 25 linear feet. During May, the company purchased 55,000 linear feet of wood for $1,072,500, and 52,000 feet were used in production. Determine the material price variance and the material quantity variance, and record the related journal entries for May.
Answer to relevant QuestionsA key idea in this book is that” You get what you measures” Essentially, this means that performance measures have a great influence on the behavior of managers.RequiredSelect a company with which you are familiar. ...Vanderwaal Company uses a standard costing system. In August, 5,300 actual labor hours were worked at a rate of $12.50 per hour. The standard number of hours is 5,275 and the standard wage rate is $12.75 per hour. Prepare a ...T&C Tees is a manufacturer of T-shirts. The standard amount of 100% cotton jersey fabric used to make each T-shirt is 2.5 yards. The standard price per yard of the fabric is $2.50.During last month, T&C purchased 5,200 yards ...Bowser Products operates a small plant in New Mexico that produces dog food in batches of 1,200 pounds. The product sells for $4 per pound. Standard costs for 2012 are:Standard direct labor cost = $16 per hourStandard direct ...National Battery Company produces a wide variety of batteries for home, automobile, and marine use. One example of its many products is the Road Guardian automobile battery. The standard cost for this battery is as ...
Post your question