Straightforward calculation of variances; variance diagrams: manufacturer During June, Barry Ltd's material purchases amounted to 6500...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Straightforward calculation of variances; variance diagrams: manufacturer During June, Barry Ltd's material purchases amounted to 6500 kilograms at a price of $12 per kilogram. Actual costs incurred in the production of 2000 units were as follows: Direct labour Direct material $266062.50 $ 51600 ($41.25 per hour) ($12 per kilogram) The standards for one unit of Barry's product are as follows: Direct material Quantity: 2 kilograms per unit Price: $12.25 per kilogram Direct labour Quantity: 3 hours per unit Rate: $40.50 per hour Required: 1. Calculate the direct material price and quantity variances and the direct labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable. Straightforward calculation of variances; variance diagrams: manufacturer During June, Barry Ltd's material purchases amounted to 6500 kilograms at a price of $12 per kilogram. Actual costs incurred in the production of 2000 units were as follows: Direct labour Direct material $266062.50 $ 51600 ($41.25 per hour) ($12 per kilogram) The standards for one unit of Barry's product are as follows: Direct material Quantity: 2 kilograms per unit Price: $12.25 per kilogram Direct labour Quantity: 3 hours per unit Rate: $40.50 per hour Required: 1. Calculate the direct material price and quantity variances and the direct labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable.
Expert Answer:
Answer rating: 100% (QA)
Soln Material Standard Quantity Standard Price Actual Quantity Actual Price Standand Quantity ... View the full answer
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Posted Date:
Students also viewed these accounting questions
-
During June, Andrew Ltd's material purchases amounted to 6500 kilograms at a price of $8 per kilogram. Actual costs incurred in the production of 2000 units were as follows: Direct labour...
-
During June, Danby Companys material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor:...
-
During April, Dryden Companys material purchases amounted to 6,500 pounds at a price of $ 7.40 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor:...
-
Can you provide an example of when you led a previous organization through a major operational change? Did you encounter any obstacles and how did you motivate and guide your team through these...
-
S&G Mining Corporation purchased a mine that is estimated to hold 500,000 tons of ore for $1,000,000.During the first year, 50,000 tons were extracted and 40,000 tons were sold. In the second year,...
-
How are the amplitudes and phases determined for free vibrations of a two degree-of-freedom system?
-
Vibration can be eliminated on the basis of theoretical analysis a. sometimes b. always c. never
-
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for 2016. Sales tax of 8 percent is...
-
1. A simple three-speed transmission is shown. The power flow is as follows: (a) First gear: gear 4 is shifted to mesh with gear 7; power flows through gears 2, 5, 7,4. (b) Second gear: gear 3 is...
-
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...
-
Company A is a mature company with steady growth. It has a policy to keep the ratio of debt to capital constant. The company will offer shares for capital increase. The details are as follows....
-
Prior to beginning work on this discussion, please read about the Economic Value Added (EVA) and the Balanced Scorecard management systems on the websites of theCorporate Finance Institute (CFI) and...
-
For the bussines environtment stand point of GE SEC 10 k explain the following, When it comes to risks, what issues might your company face? To find out, search your company's PDF version of the SEC...
-
A. Calculate the cross-arc elasticity in the following situation. (mathematical method) Price X Amount Y $10 70 $13 100 Based on the above result, consumer response regarding products can be...
-
How do these strengths enable the firm to meet customers' needs? How do these strengths differentiate the firm from its competitors? B. Weaknesses Weakness 1 Weakness 2 How do these weaknesses...
-
What are some reasons you can think of for a company using a predetermined overhead rate? Based on your work experience, what are some factors that should be considered for direct material, direct...
-
Identify and explain how the use of organizational behavior can lead to the success and failure of an organization.
-
In Exercises discuss the continuity of each function. f(x) -3 1 x - 4 y 3 2 -1 -2 -3+ 3 X
-
Office Magic Ltd manufactures ergonomic office equipment. The standard cost for material and labour is $190 per unit. This includes 8 kilograms of direct material at a standard cost of $5 per...
-
Traditional management accounting systems classify costs as fixed and variable. Define these terms and provide three examples of each for a bank.
-
Racing Wheels Bicycle Shop sells racing bicycles. For the purposes of a cost volume profit analysis , the shop owner has divided sales into two categories, as follows Three-quarters of the shop's...
-
Describe how partial and circular reasoning can be helpful or harmful in resolving ethical dilemmas.
-
Describe the various legal risks for nurses.
-
Describe the various roles of advanced practice nurses.
Study smarter with the SolutionInn App