Problem set A

Wilson's materials quantity variance for the current month was exactly one$-$half of its materials price variance. Both variances were unfavorable. The company's cost accountant has supplied the following standard cost information:

Standard price per pound of materials $q,$

$$15$

Actual pounds purchased and used during the month $q,600$ pounds

Actual cost per pound of materials purchased and used $...$ $$16$

Actual units ; Thanufactured during the month $...500$ units

Normal productive output per month

Instructions

a$.$ Compute Wilson's materials price variance.

b$.$ Compute the standard quantity of materials allowed for producing $550$ units of product.

c$.$ Record the joumal entry to charge Work in Process for the cost of materials used during the month.

d$.$ Assume Wilson's overhead volume variance is twice the amount of its materials quahtity variance. Is the volume variance favorable or unfavorable? How do you know?

AgriChem Industries manufactures fertilizer concentrate and uses cost standards. The fertilizer is produced in $500-$pound batches; the normal level of production is $250$ batches of fertilizer per month. The standard costs per batch are as follows: