materials price variance and materials quantity variance Eia 2Prepuiz a Harris C
ID: 2562465 • Letter: M
Question
materials price variance and materials quantity variance
Eia 2Prepuiz a Harris Corporation produces a single product. Last year, Harris manufactured 34,930 units and sold 29,900 units n costs for the year were as follows: Sales were $1,330550, for the year, variable selling a Oddo Corporation makes a product with the following standard costs: Standard Cost Per Unit uatitySlandad Price or or Hours Rate $ 90 per ounce r hour Variatble overhead 8.00 per fiou $5.60 The company reported the following results concerning this product in December. 4,490 ,290 units 17,450 oun 3.393 hours Actual output Actual direct labor-haurs Purchases of raw materlals 220 unces als Actual direct labor rate Actual variable ove $19,20 per hour $8.10 The compary applies variable overhead on the basis ol direct labor-hours. The direcl materials purchases variance is computed when the materials are purchased. The materials quantity variance for December is: O $2,291U O $2.233Uu O $2.233 F O $2,291 F Type here to search w 11/3/2017Explanation / Answer
2,291 U Standard Actual Particulars Qty/ hours Rate amount Qty/ hours Rate amount Materials 17,160.00 7.90 135,564.00 17,450.00 7.70 134,365.00 Actual output 4,290.00 Materials reqd (4290 *4) 17,160.00 DMQV= (SQ-AQ)SP DMQV= (17160 - 17450)7.90 DMQV= (290)7.90 DMQV= 2,291 U Standard Actual Particulars Qty/ hours Rate amount Qty/ hours Rate amount Materials 29,680.00 4.00 118,720.00 33,000.00 4.10 135,300.00 Actual output 5,300.00 Materials reqd (5300 *5.6) 29,680.00 DMPV = (SP-AP)*AQ purchased DMPV = (4 - 4.10)33000 DMPV = (-0.10)33000 DMPV = 3,300 U
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