Boston Tooling uses a standard cost system to account for the costs of its one product....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Boston Tooling uses a standard cost system to account for the costs of its one product. Standards are 4.0 sheets of 1/2 inch steel at $110 per sheet and 14.1 hours of labor at a standard wage rate of $14. During July, Boston Tooling produced 620 units. Materials purchased and used totaled 2,600 sheets at a total cost of $275,000. Actual direct labor cost totaled $122,390 for 8,830 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance Boston Tooling uses a standard cost system to account for the costs of its one product. Standards are 4.0 sheets of 1/2 inch steel at $110 per sheet and 14.1 hours of labor at a standard wage rate of $14. During July, Boston Tooling produced 620 units. Materials purchased and used totaled 2,600 sheets at a total cost of $275,000. Actual direct labor cost totaled $122,390 for 8,830 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance
Expert Answer:
Answer rating: 100% (QA)
a Price variance Actual direct materials cost Standard price Actual ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Regent Corp uses a standard cost system to account for the costs of its one product. Materials standards are 2.8 pounds of material at $13 per pound and 2 hours of labor at a standard wage rate of...
-
Folsom Fabricators, Inc., uses a standard cost system to account for its single product. The standards established for the product include the following: Materials . . . . . . . . . . . . . . . . . ....
-
Futuristic Fabricators Inc. uses a standard cost system to account for its single product. The standards established for the product include the following: Materials . . . . . . . . . . . . . . . . ....
-
Oliver owns Wifit, an unincorporated sports store. Wifit earned $100,000 before Oliver drew out a salary of $60,000. What is Oliver's deduction for self-employment taxes? Group of answer choices A....
-
Presented below is financial information for two different companies Instructions Compute the missingamounts. Hirsch Company $30,000 Ho Company Sales Sales returns Net sales Cost of goods solo Gross...
-
Show-Off, Inc. sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento- and operates a general corporate headquarters in Reno. A review of the company's income statement...
-
What is the purpose of a steering committee?
-
The physical inventory for Ajak Manufacturing was taken on December 30, 2011, rather than December 31, because the client had to operate the plant for a special order the last day of the year. At the...
-
Correct Mark 1.00 out of 1.00 Casual research is used to understand the effects of one variable (e.g., the wording in advertising) on another variable. Question 46 What is the most popular parametric...
-
On 12/31/2021, 7-Eleven acquired 75 percent of Speedway's net identifiable assets for $177,000. The book value of Speedway's assets was equal to $210,000 at the date of acquisition. The fair value of...
-
Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that...
-
For the Cobb-Douglas production function q (K, L) = AKL-a prove that it is subject to the three properties of linearly homogeneous production functions, i.e., 1. APL and APK are both function of the...
-
1. You have been dispatched to 123 Anywhere St. for a neighbour dispute.The complainant is the homeowner, Amanda. As you arrive, Matteo, the basement tenant, is waiting for you outside.Matteo tells...
-
Circular curves chords It is required to truncate a corner by 3 equal chords 20m long. The three-chord truncation is required to be calculated and set-out from the intersection point (IP). Determine...
-
BREACH OF CONTRACT, INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS NEGLIGENCE, DEFAMATION, MEDICAL ABANDONMENT, BREACH OF CONFIDENTIALITY ASSAULT, BATTERY, FALSE IMPRISONMENT, FAILURE TO WARN For each...
-
How does the introduction of site-specific heterogeneity within catalytic surfaces affect the activity and selectivity of heterogeneous catalysts, particularly in complex organic synthesis ?
-
On January 1, 2017, Foster Co. established a share appreciation rights plan for the executives. The plan entitled them to receive cash at any time during the next 4 years for the difference between...
-
The executor of Gina Purcells estate has recorded the following information: Assets discovered at death (at fair value): Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
A client, Shirlee James, requires 10 partner labor hours and 25 professional associate hours from O'Reilly and Shriberg, the law firm in E9-6. The partners of O'Reilly and Shriberg, attorneys-at-law,...
-
One of the tennis rackets that Match Point manufactures is a tita- nium model (Slam) that sells for $149. The cost of each Slam consists of: Materials . . . . . . . . . . . . . . . . . . . . . . . ....
-
D-List Calendar Co. specializes in manufacturing calendars that depict obscure comedians. The company uses a standard cost system to control its costs. During one month of operations, the direct...
-
Consider a Poisson regression model where y has density f ( y ) = e y / y ! ! , y i = 0 , 1 , 2 , , and we have independence over i . Because of coding error we only fully observe y when y ...
-
This question considers the consequences of misspecification in the Tobit model. The starting point is the model of Exercise 16.1. (a) Generate y with heteroskedasticity by letting u N [ 0 , 2 z ]...
-
Consider the multinomial version of the PCGF test given in (8.23) with \(p_{j}\) replaced by \(\widehat{p}_{j}=N^{-1} \sum_{i} F_{j}\left(\mathbf{x}_{i}, \widehat{\boldsymbol{\theta}} ight)\). Show...
Study smarter with the SolutionInn App