The following data relate to the direct materials cost for the production of 20,000 automobile tires: a.
Question:
The following data relate to the direct materials cost for the production of 20,000 automobile tires:
a. Determine the price variance, quantity variance, and total direct materials cost variance.
b. To whom should the variances be reported for analysis and control?
Transcribed Image Text:
Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
a Price variance Direct Materials Price Variance Actual Price Standard Price Actual Quantity 265 per ...View the full answer
Answered By
Muhammad Rehan
Enjoy testing and can find bugs easily and help improve the product quality.
4.70+
10+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Direct Materials Variances The following data relate to the direct materials cost for the production of 20,000 automobile tires: Actual: 80,000 Ibs. at $2.65 $212,000 Standard: 86,000 Ibs. at $2.50...
-
The following data relate to the direct materials cost for the production of 15,000 automobile tires: a. Determine the price variance, quantity variance, and total direct materials cost variance. b....
-
The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 51,700 lbs. at $1.70 $87,890 Standard: 50,700 lbs. at $1.75 $88,725 a. Determine the...
-
What are the three main ways in which interest groups use the courts to affect public policy? Discuss one example of a successful use of the courts by an interest group.
-
Mike and Cheryl and an adjusted gross income of a dollars. Mike just got a $3K raise and Cheryl got a $1.5K raise. They are considering moving to a new house with monthly mortgage payments of m...
-
Which if the following are categories contained in the fundamental accounting equation? A. Assets B. Liabilities C. Expenses D. Owners Equity
-
Liquid oxygen is stored in a tank at \(-298^{\circ} \mathrm{F}\) and 35 psia. It is to be pumped at \(100 \mathrm{lb} / \mathrm{s}\) to a pressure of \(300 \mathrm{psia}\). The liquid oxygen level in...
-
Which method (direct or indirect) of presenting the statement of cash flows is more intuitively logical? Why?
-
Develop a sustainability plan for using water resources from the country Brazil. This plan should be written with SMART goals (Specific, Measurable, Attainable, Relevant, Time bound). Be clear about...
-
Phoenix plc trial balance at 30 June 20X7 was as follows: The following information is available: 1. Freehold premises acquired for £1.8 million were revalued in 20X4, recognizing a gain of...
-
Shakti Power Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March ........$60,000 April...
-
Kraft Heinz Company (KHC) uses standards to control its materials costs. Assume that a batch of ketchup (6,000 pounds) has the following standards: The actual materials in a batch may vary from the...
-
The following ANOVA summary table is for a multiple regression model with two independent variables: a. Determine the regression mean square (MSR) and the mean square error (MSE). b. Compute the...
-
We the information provided on the Walmart balance Sheet, I need to find the LIQUIDITY for the years 2015-2014-2013. Just the current ration and the quick ratio. What is liquidity and the formulas...
-
Assume that a sample of the monthly percentage rates of return of the stock S is given in the table below. Month Rates of return Month Rates of return 1 1% 13 4,2% 2 0,5% 14 4,5% 3 4,2% -2,7% -2%...
-
You work for a consultancy and a client is interested in knowing the consumer preferences between pints and shoes. You obtain data on prices and quantities of consumption of shoes and pints for 40...
-
ARP (Address Resolution Protocol) Poisoning is a form of attack in which an attacker sends falsified ARP messages over a local area network. This results in the linking of an attacker's MAC address...
-
An infiltrometer is used to determine the infiltration capacity of a clay soil. The experiment lasted 120 minutes. During the experiment water was added to maintain a constant water level in the...
-
Use SolverTable in the blending model to see whether, by increasing the selling price of gasoline, you can get ansoptimal solution that produces only gasoline, no heating oil. Then use SolverTable...
-
Maria Castigliani is head of the purchasing department of Ambrosiana Merceti, a medium-sized construction company. One morning she walked into the office and said, The main problem in this office is...
-
On March 31, 2010, the balances of the accounts appearing in the ledger of El Dorado Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the...
-
Two items are omitted in each of the following four lists of income statement data. Determine the amounts of the missing items, identifying them byletter. Sales Sales returns and allowances Sales...
-
Identify the errors in the following income statement and prepare a corrected incomestatement: ARMORTEC COMPANY Income Staterment For the Year Ended February 28, 2010 Revenue from sales: Sales...
-
On-campus corporate presentations: Sympathy for the Devil Many students complain about the high number of corporate presentations taking place both on- and off-campus. In this question, we seek to...
-
How do organizations cultivate a culture of open innovation, leveraging crowdsourcing platforms, collaborative networks, and cross-industry partnerships to harness external knowledge and drive...
-
Braeden Sim is the accountant for Sim's Internet Service. From the following information, his task is to construct a balance sheet as of April 30, 201X, in proper form. Could you help him? (Click the...
Study smarter with the SolutionInn App