N Netflix ,\') 201810-Spring 2018-ACCT-21 × y D chapter 10HW e Accounting questi

Question

N Netflix ,') 201810-Spring 2018-ACCT-21 × y D chapter 10HW e Accounting question lcheggX Ashley ? 0 ezto.mheducation.com/hm.tpx Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Price or Rate $25.00 per ounce $15.00 per hour $3.00 per hour Standard Standard Quantity Cost Direct materials Direct labor Variable manufacturing overhead 2.20 ounces 0.50 hours 0.50 hours 55.00 7.50 1.50 64.00 During November, the following activity was recorded relative to production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $282,000. b. There was no beginning inventory of materials; however, at the end of the month, 2,750 ounces of material remained in ending inventory c. The company employs 25 lab technicians to work on the production of Fludex. During November, they worked an average of 110 hours at an average rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $2,400. e. During November, 4,100 good units of Fludex were produced Required: 1. For direct materials: a. Compute the price and quantity variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Materials price variance Materials quantity variance

Explanation / Answer

1) for direct materials a. price and quantity variance Standard - Actual * Actual = Variance price price quantiy materials price variance 25 23.5 12,000 = 18000 F standard - Actual * Standard = Variance qty qty price materials quantity variance 9020 9,250 25 5750 U b. yes

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