Calculate the following variances

Assignment Help Accounting Basics
Reference no: EM13113367

Question: Expected production (units) 13,000

Standard DML hours per unit 5
Standard DML rate per hour $24
Standard pounds of DM usage per unit 4
Standard DM price per pound $12

Actual
Units produced 12,000
DML hours worked 62,000
Total cost of DML $1,240,000
Pounds of DM purchased 54,000
Total cost of DM purchased $702,000
Pounds of DM used 47,000

a) Calculate the following variances:
Direct manufacturing labor rate variance
Direct manufacturing labor usage variance
Direct materials price variance (how we did it in the chat session)
Direct materials usage variance


b) Explain what each of the calculated variances imply about the firm’s operations. Be specific!
Direct manufacturing labor rate variance
Direct manufacturing labor usage variance
Direct materials price variance
Direct materials usage variance

Reference no: EM13113367

Lockhart corporation is a calendar-year corporation.

Lockhart Corporation is a calendar-year corporation. At the beginning of 2013, its election to be taxed as an S corporation became effective. Lockhart Corp.'s balance sheet at

Estimating the proportion of automobile tires

A safety expert is interested in estimating the proportion of automobile tires with unsafe treads. Should he use individual cars or collections of cars, such as those in par

Important factor for evaluating pending lawsuit

What accounting factors are significant before evaluating whether a pending lawsuit should be accrued as a liability and reflected in the financial statements?

Client suggestions for the conduct of an audit

a.) To what extent should auditors follow the client's suggestions for the conduct of an audit? Discuss. b.) List and discuss the reasons the audit work should not be assigne

Purpose of a bank reconciliation

What is the purpose of a bank reconciliation? What are the reasons for differences between the cash reported in the accounting records and the cash balance in the bank stat

What was the percentage rate of return on plan assets

At the end of the year, retiree benefits paid by the trustee were $6 million and cash invested in the pension fund was $7 million. What was the percentage rate of return on pl

Spending behavior of the average customer

Global trends are changing on a daily basis. Global economies are weakening and some companies are discouraged by the condition of terroristic threats that are occurring. Th

Discuss the three sections of the indirect method

Discuss the three sections of the indirect method of presentation for the Statement of Cash Flows. Also discuss why the statement of cash flow is just as important as the in

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd