The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram. The production of the product in April was 870 units, but production had been budgeted for 850 units. During April, 8,200 kilograms of the raw material were purchased for $6,888 and 7,150 kilograms of the raw material were used in production. The material quantity variances for April is:

Q: A company manufactures t-shirts. In January, the budgeted direct labor hours are 1,960, and the…

A: Solution: Budgeted price per T-shirt = $84,000 / 4200 = $20 Per T-shirt Actual price per T-shirt =…

Q: Watson Company manufactures a product with a standard direct labor cost of three hours at $20.00 per…

A: The variance is the difference between the actual data and standard output of the production.

Q: Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted…

A: Direct materials quantity variance = (Standard Quantity - Actual Quantity) * Standard Price Direct…

Q: During December, Wards Company’s actual costs incurred in the production of 2,000 units were as…

A: The actual cost details and standard cost details are given and we have to compute different…

Q: The standard to manufacture a given electronic component is 10 transistors at $75 per transistor.…

A: Answer) Calculation of Material Price variance Material price variance = (Standard price per…

Q: A company's master budget for October is to manufacture and sell 31,600 units, for a total sales…

A: The variance is the difference between the actual data and standard output of the production. The…

Q: Unit VIII question 7

A: The variance is the difference between the standard production dat and actual production costs…

Q: The normal capacity of the Cutting Department is 12,000 machine hours per month. At normal…

A: The question is based on the concept of Cost Accounting. The difference between the actual amount of…

Q: The data below relate to the standards for the sole product of Marshal Corporati August: Standard…

A: The difference between a standard and an actual value is called variance and can be favorable or…

Q: Courington Detailing's cost formula for its materials and supplies is $2,010 per month plus $6 per…

A: Standard materials and supplies  cost = $2,010 per month + (Actual no. of vehicle x $6 per vehicle)…

Q: During April, 80,000 units of product were produced. The standard quantity of material allowed per…

A: Solution: materials usage variance = (standard quantity - actual quantity used) * Standard price…

Q: The following data pertains to the month of October for ElmCo. when production was budgeted to be…

A: Fixed overhead volume variance is the amount of difference between the overhead absorbed/applied and…

Q: Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per…

A: Material price variance is computed when material is purchased. Material price variance  is…

Q: Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted…

A: a) Compute the direct material variance:

Q: Bulbasaur Company uses a standard costing system in the manufacture of its single product. The…

A: The question is based on the concept of cost accounting.

Q: Tugwell Inc. budgeted​ 10,700 pounds of direct materials costing​ $23.50 per pound to make​ 5,100…

A: Given, Actual quantity = 11,000 pounds Standard quantity = 10,700 pounds Standard price = $23.50

Q: Bulbasaur Company uses a standard costing system in the manufacture of its single product. The…

A: Standard rate per unit = standard cost allowed  / Standard quantity allowed = P67500/(15000*3) = P…

Q: Baxter Corporation’s master budget calls for the production of 5,200 units per month and $162,240…

A: The question is based on the concept of Cost Accounting.

Q: Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the…

A: Material purchase price variance means when there is a difference between actual cost of material…

Q: Bulbasaur Company uses a standard costing system in the manufacture of its single product. The…

A: Standard rate per pound = standard cost allowed  / Standard quantity allowed = P67500/(15000*3) = P…

Q: Jaw Titan Company established a standard direct material cost of Php30 per finished unit for its…

A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47…

A: An activity variance would seem to be the gap between a revenue or expenditure unit within a…

Q: Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of…

A: Variances are the variations between the estimates so made for the outlays and the actual outlays.

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per…

A: Formulas; Budgeted Manufacturing Overhead = Manufacturing overhead + (Rate per Machine hours x…

Q: Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per…

A: Variance is an important concept in budgeting which indicates the deviations of budget prepared and…

Q: During August, 10,000 units were produced. The standard quantity of material allowed per unit was 10…

A: Material usage variance = (Standard quantity of material allowed- actual quantity of material…

Q: During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of direct…

A: Answer) Calculation of Material Quantity variance Material Quantity variance = (Standard quantity of…

Q: Bondi Corporation makes automotive engines. For the most recent month, budgeted production was 3,500…

A: Answer Variable overhead rate variance =Actual hours worked×(Standard overhead rate-Actual overhead…

Q: Devoto Incorporated has provided the following data concerning one of the products in its standard…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: Normal annual capacity for ABC Company is 72,000 units, with fixed factory overhead budgeted at P…

A: The ideal capacity variance refers to the amount by which the actual production usage declines below…

Q: Gipple Corporation makes a product that uses a material with the quantity standard of 7.9 grams per…

A: Material price variance = (Standard price per pound - Actual price per pound)*Actual quantity…

Q: The cost accountant for Blue Pharmaceuticals has informed you that the company's materials quantity…

A: Variances mean the amount by which something changes or a difference between actual and estimated…

Q: Product N requires a standard amount of 3 labour hours per unit, at a standard rate of £9.50 per…

A: Solution Actual rare of labor = actual cost / actual hours  = 42300/ 4700 = 9.00 per hour

Q: Bulbasaur Company uses a standard costing system in the manufacture of its single product. The…

A: Standard rate per unit = standard cost allowed  / Standard quantity allowed = P67500/(15000*3) =…

Q: During the month of April 20X1 Winston Ltd. produce 6,700 dodgits. The cost of the materials in…

A:

Q: Purvis Manufacturing, which produces a single product, has prepared the following standard cost…

A: The variance is the difference between standard data of production and actual costs incurred for…

Q: Petrus Framing's cost formula for its supplies cost is $1,790 per month plus $10 per frame. For the…

A: Supplies expense is the cost of consumables used during a fiscal quarter. This might be one of the…

Q: During December, 6,000 pounds of raw materials were purchased at a cost of $16 per pound. If there…

A: Actual cost incurred = 6,000 pounds x $16 = $96,000   Standard cost = Actual cost - Unfavorable…

Q: A product has budgeted production of 1,000 units and a material cost of £14,000; the standard cost…

A: Answer) Calculation of Material Price variance Material price variance = (Standard price per Kg of…

Q: The standard cost for the David Company's product is 5 pounds of materials for each unit of product…

A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…

A: Direct material price variance = (Standard Price - Actual price) x Actual Quantity  = (Standard…

Q: Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the…

A: Spending variance: = Actual results - Flexible budget

Q: During March, the company purchased direct materials at a cost of $45,210, all of which were used in…

A: 1.a Compute actual cost per foot: Actual cost per foot = Actual cost / Actual quantity Actual cost…

Q: During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per…

A: Variances are the differences between the standard and actual costs of direct material, direct labor…

Q: Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the…

A: Given the following information: Standard direct labor hour per unit: 3 hours Standard labor rate:…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.