Honest Joe, Corp. has set the following standards for direct materials (DM) costs per unit for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Honest Joe, Corp. has set the following standards for direct materials (DM) costs per unit for the good it manufactures: Standard Quantity: 5.1 ounces per unit Standard Price: $3.90 per ounce During the month of August, the firm incurred the following actual DM costs to produce 35,000 units: Actual Total Quantity: 180,700 total ounces Actual Total DM Cost: $692,100 a. Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U). C. Honest Joe, Corp. has set the following standards for direct materials (DM) costs per unit for the good it manufactures: Standard Quantity: 5.1 ounces per unit Standard Price: $3.90 per ounce During the month of August, the firm incurred the following actual DM costs to produce 35,000 units: Actual Total Quantity: 180,700 total ounces Actual Total DM Cost: $692,100 a. Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U). C.
Expert Answer:
Answer rating: 100% (QA)
To solve the given problems we need to calculate three different types of variances related to direct materials DM costs the DM cost variance the DM p... View the full answer
Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
In the diagram, A, B and C are points on the circumference of the circle with centre O and radius r. The shaded region, ABC, is a sector of the circle with centre C. Angle OCA is equal to radians....
-
Complete the table below by calculating the MATURITY VALUE of $500 for the next 30 years at 10% interest rate using simple interest and compound interest (monthly compounding). Then, graph both the...
-
10 J of heat are removed from a gas sample while it is being compressed by a piston that does 20 J of work. What is the change in the thermal energy of the gas? Does the temperature of the gas...
-
Selected information concerning the operation of Kern Company for the year ended December 31, 2017, is available as follows: Units...
-
Statistical monitoring of a quality characteristic uses both an x and s chart. The charts are to be based on the standard values m = 200 and sx = 10, with n = 4. (a) Find three-sigma control limits...
-
When uranium fissions, the fission products are radioactive because the nuclei are neutron-rich. What is the most likely decay mode for these nuclei? A. Alpha decay C. Beta-plus decay B. Beta-minus...
-
The current price of a stock is $33, and the annual risk-free rate is 6%. A call option with a strike price of $32 and with 1 year until expiration has a current value of $6.56. What is the value of...
-
What refers to the riskiness of a company with regard to the amount of liabilities in its capital structure?
-
Santana Rey created Business Solutions on October 1, 2020. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up...
-
12. Record keeping, payroll, and simple inventory problems are examples of a structured b. semistructured e unstructured d. pseudostructured decisions. 3. Which of the following functions is...
-
A potential projects predicted cash flows give a NPV of $50,000 at a discount rate of 10% and $10,000 at a rate of 15%. Calculate the IRR.
-
isk associated with marketing risk, credit risk, liquidity, and can also be a hostile takeover due to too much profit on hand is referred to as: a. Intangible risk b. Operating risk c. Financial risk...
-
Which one of the following statements is true regarding the valuation conditions of the ISO Builders Risk Coverage Form? Available answer options Select only one option A The valuation condition...
-
4. Use the method of separation of variables to find the product solution PDEs: (a) u+uy=3u (b) xux = 2yuy e
-
Spence Company is considering a project that has the following cash flow data. What is the project's IRR? Year Cash flows 21.20% 15.23% 17.64% 19.77% 14.15% 0 2 -$1,050 $300 $400 $400 $400
-
The ages (in years) of a random sample of shoppers at a gaming store are shown. Determine the range, mean, variance, and standard deviation of the sample data set. 12, 17, 23, 13, 19, 18, 21, 16, 14,...
-
1-Stern observed all of the following results EXCEPT _______ in his experiment. A-one of the recombinant phenotypes was associated with an X chromosome of normal length B-the number of car, B+ male...
-
What is a meant by the term equivalent units of production when the weighted-average method is used?
-
In eight years, Kent Duncan will retire. He is exploring the possibility of opening a self-service car wash. The car wash could be managed in the free time he has available from his regular...
-
Rhyil Corporation has started operations in the current year (Year 1). The company manufactures and sells fridge freezers. Rhyil Corporation is a subsidiary of a well-known electrical appliances...
-
How many structural isomers are there for hydrocarbons that have the molecular formula C 4 H 10 ? (a) none (b) one (c) two (d) three
-
Which contains more hydrogen atomsa five-carbon saturated hydrocarbon molecule or a five-carbon unsaturated hydrocarbon molecule? (a) The unsaturated hydrocarbon has more hydrogen atoms. (b) The...
-
Which would you expect to be more viscousa polymer made of long molecular strands or a polymer made of short molecular stands? Why? (a) long strands, because they tend to tangle among themselves (b)...
Study smarter with the SolutionInn App