Question 22.1: Tip Top Corp. produces a product that requires six standard ...

Financial and Managerial Accounting

Tip Top Corp. produces a product that requires six standard pounds per unit. The standard price is $4.50 per pound. If 3,000 units required 18,500 pounds, which were purchased at $4.35 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance?

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: 22.IP.1

Hawley Inc. manufactures woven baskets for national distribution. The standard costs for the manufacture of Folk Art style baskets were as follows: ...

Verified Answer:

1. Direct materials Cost variance price variance...

Question: 22.6

Prepare an income statement for the year ended December 31, 2014, through gross profit for Tip Top Corp. using the variance data in Example Exercises 22-1 through 22-4. Assume Tip Top sold 3,000 units at $100 per unit. ...

Verified Answer:

Tip Top Corp Income Statement through Gross Prof...

Question: 22.7

The following are inputs and outputs to the baggage claim process of an airline: Baggage handler training Time customers wait for returned baggage Maintenance of baggage handling equipment Number of baggage handlers Number of damaged bags On-time flight performance Identify whether each is an ...

Verified Answer:

Baggage handler training Input Time customers w...

Question: 22.5

Tip Top Corp. produced 3,000 units that require six standard pounds per unit at the $4.50 standard price per pound. The company actually used 18,500 pounds in production. Journalize the entry to record the standard direct materials used in production. ...

Verified Answer:

Work in Process (18,000* pounds × $4.50) . . . . ....

Question: 22.4

Tip Top Corp. produced 3,000 units of product that required 2.5 standard hours per unit. The standard fixed overhead cost per unit is $0.90 per hour at 8,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. ...

Verified Answer:

Fixed Factory Overhead Volume Variance = (Standard...

Question: 22.3

Tip Top Corp. produced 3,000 units of product that required 2.5 standard hours per unit. The standard variable overhead cost per unit is $2.20 per hour. The actual variable factory overhead was $16,850. Determine the variable factory overhead controllable variance. ...

Verified Answer:

Variable Factory Overhead Controllable Variance = ...

Question: 22.2

Tip Top Corp. produces a product that requires 2.5 standard hours per unit at a standard hourly rate of $12 per hour. If 3,000 units required 7,420 hours at an hourly rate of $12.30 per hour, what is the (a) direct labor rate variance, (b) direct labor time variance, and (c) total direct labor cost ...

Verified Answer:

a. Direct labor rate variance (unfavorable) ...