When a variance is recorded in a standard cost system, a credit entry reflects a

Question

When a variance is recorded in a standard cost system, a credit entry reflects a(n). Albertville has a material standard of 1 pound per unit of output. Each pound has n standard price of $26 per pound. During July, Albertville paid $132,200 for 4,950 pounds. 4,600 pounds were used to produce 4,700 units What is the direct materials price variance? Albertville has a material standard of 1 pound per unit of output. Each pound has a standard price of $26 per pound. During July, Albertville paid $132,200 for 4.950 pounds. 4,600 pounds were used to produce 4.700 units What is the direct materials quantity variance? Albertville has a direct labor standard of 2 hours per unit of output. Each employee has standard wage rate of $22.50 per hour. During July, Albertville paid $189,500 to employees for 8,890 hours worked. 4,700 units were produced during July. What is the direct labor rule variance?

Explanation / Answer

Q97 A Favourable Variance Q98 A3500 Unfavourable Particulars Standard Actual Qty Rate amount Qty Rate amount Materials        4,700.00         26.00        122,200.00        4,950.00          26.71        132,200.00 Labour        9,400.00         22.50        211,500.00        8,890.00          21.32        189,500.00 Actual output        4,700.00 Materials reqd(4700*1)        4,700.00 Labour Required(4700*2)        9,400.00 DMPV = (SP-AP)*AQ DMPV = (26-26.71)4950 DMPV = 3,500 U Q99 2,600 Favourable DMQV= (SQ-AQ)SP DMQV= (4700-4600)26 DMQV= 2,600 F Q100   C 10,525 Favourable DLRV= (SR-AR)AH DLRV= (22.50-21.32)8890 DLRV= 10,525 F

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.