Question 23.3: A manufacturing company reports the following for one of its...

Fundamental Accounting Principles

A manufacturing company reports the following for one of its products. Compute the direct materials (a) price variance and (b) quantity variance and classify each as favorable or unfavorable.

Direct materials standard . . . . . . . . . .	8 pounds @ $6 per pound
Actual direct materials used . . . . . . . .	83,000 pounds @ $5 .80 per pound
Actual finished units produced . . . . .	10,000

The "Step-by-Step Explanation" refers to a detailed and sequential breakdown of the solution or reasoning behind the answer. This comprehensive explanation walks through each step of the answer, offering you clarity and understanding.
Our explanations are based on the best information we have, but they may not always be right or fit every situation.

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

This Question has been Answered.

Already have an account?

Related Answered Questions

Question: 23.6

Pacific Company provides the following information about its budgeted and actual results for June 2019. Although the expected June volume was 25,000 units produced and sold, the company actually produced and sold 27,000 units, as detailed here. ...

Verified Answer:

PLANNING THE SOLUTION Prepare a table showing the...

Question: 23.7

Prepare the journal entry to record these direct materials variances. ...

Verified Answer:

Question: 23.5

A manufacturing company uses standard costs and reports the information below for January. The company uses machine hours to apply overhead, and the standard is two machine hours per finished unit. Compute the total overhead cost variance, overhead controllable variance, and overhead volume ...

Verified Answer:

Question: 23.4

The following information is available for a manufacturer. Compute the direct labor rate and efficiency variances and label them as favorable (F) or unfavorable (U). ...

Verified Answer:

Question: 23.1

A manufacturing company reports the following fixed budget and actual results for the past year. The fixed budget assumes a selling price of $40 per unit. The fixed budget is based on 20,000 units of sales, and the actual results are based on 24,000 units of sales. Prepare a flexible budget ...

Verified Answer:

Question: 23.2

A manufacturer reports the following standard cost card. For June, the company made 1,200 units and incurred actual total manufacturing costs of $135,850. Compute the standard cost per unit and the total cost variance. Label the variance as favorable (F) or unfavorable (U). ...

Verified Answer:

Standard cost per unit = (2 × $25) + (1.5 × $18) +...