Fiberworks Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard...
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Fiberworks Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard cost system and has designed the system to isolate variances s soon as possible. During the month of May, the following results were reported for the production of 25,400 toy boats: Direct materials (fiberglass) purchased Direct materials issued into production Standard pounds allowed per boat Standard price per pound Cost of fiberglass purchased. Actual cost per pound 49,800 pounds 39,500 pounds Required: a. Calculate the actual cost per pound of fiberglass purchased during May. (Round your answer to 2 decimal places.) 1.49 pounds. Direct materials purchase price variance $6.47 $304,278 b. Calculate the direct materials purchase price variance for May. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) c. Calculate the direct materials usage variance for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct materials usage variance Fiberworks Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard cost system and has designed the system to isolate variances s soon as possible. During the month of May, the following results were reported for the production of 25,400 toy boats: Direct materials (fiberglass) purchased Direct materials issued into production Standard pounds allowed per boat Standard price per pound Cost of fiberglass purchased. Actual cost per pound 49,800 pounds 39,500 pounds Required: a. Calculate the actual cost per pound of fiberglass purchased during May. (Round your answer to 2 decimal places.) 1.49 pounds. Direct materials purchase price variance $6.47 $304,278 b. Calculate the direct materials purchase price variance for May. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) c. Calculate the direct materials usage variance for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct materials usage variance
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a Actual cost per pound of fiberglass purchased during May 304278 49800 pounds 610 per pound b D... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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