User Account

All Pages

Calculate direct materials price variances

Assignment Help Accounting Basics
Reference no: EM131791975

Price and efficiency variances, journal entries. The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:

Direct materials: 10 lb. at $4.50 per lb. $45.00

Direct manufacturing labor: 0.5 hour at $30 per hour 15.00

The number of finished units budgeted for January 2014 was 10,000; 9,850 units were actually produced.

278 CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL

Actual results in January 2014 were as follows:

Direct materials: 98,055 lb. used

Direct manufacturing labor: 4,900 hours $154,350

Assume that there was no beginning inventory of either direct materials or finished units.

During the month, materials purchased amounted to 100,000 lb., at a total cost of $465,000. Input price

variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage.

1. Compute the January 2014 price and efficiency variances of direct materials and direct manufacturing labor.

2. Prepare journal entries to record the variances in requirement 1.

3. Comment on the January 2014 price and efficiency variances of Schuyler Corporation.

4. Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time?

Reference no: EM131791975

Questions Cloud

Calculate the issue price of the bonds : Calculate the issue price of the bonds, bonds with a face value of $400,000 and a stated interest rate of 12% payable semiannually
Explain the relationship in automation and transportation : Explain the relationship between automation and transportation when associated with domain human factors.
Compute hanigan manufacturing basic earnings per share : Hanigan Manufacturing had 1,800,000 shares of common stock outstanding as of January 1, 2014, and 900,000 shares of 10% noncumulative (nonconvertible).
Prepare a reconciliation of net income to net cash flows : The accounting records of EZ Company provided the data below. Prepare a reconciliation of net income to net cash flows from operating activities
Calculate direct materials price variances : Why might Schuyler calculate direct materials price variances and direct materials efficiency variances with reference
What was common stock conversion rate for preferred share : The convertible preferred stock has a $100 par value per share. How many preferred shares were issued, and what was the common stock conversion rate.
One of the contingencies of influence is discretion : The difference between power and influence lies in the premise that. One of the contingencies of influence is "discretion"
Discuss measures that may be used to assess the quality : Discuss measures that may be used to assess the quality of a firms reported earnings. Obtain an annual report for a large corporation and perform a quality.
Research and analyze a case involving ethical issues : Using the internet, research and analyze a case involving ethical issues surrounding corporate governance from a global position.

Reviews

Write a Review

Accounting Basics Questions & Answers

  The store carries two portable sound systems

AudioMart is a retailer of radios, stereos, and televisions. The store carries two portable sound systems that have radios, CD players, and speakers

  Soap company manufactures soap x and soap y and can sell

soap company manufactures soap x and soap y and can sell all it can make of either. based on the following data if soap

  Mcgee corporation offers gruden 5 per disc for 6000 discs

gruden company produces golf discs which it normally sells to retailers for 6.80 each. the cost of manufacturing 17100

  What are the inclusive dates of the fiscal year

Report the following ratios, using the text material for the Village of Elizabeth as a guide.

  Pyramid corporation paid 16200 for a 90 interest in steel

pyramid corporation paid 16200 for a 90 interest in steel corporation on january 1 2011 when steels stockholders

  On march 1 2009 eckert and kelley formed a partnership

on march 1 2009 eckert and kelley formed a partnership. eckert contributed 83000 cash and kelley contributed land

  Compute the inventory turnover and acid-test ratio

Summary information from the financial statements of two companies competing in the same industry follows.

  Determine gross pay for the restaurant

Gabrielle Hunter, a waitress at the Hole-in-the-Wall restaurant, worked 42 hours this week and collected over $500 in tips. The restaurant uses the full tip credit against minimum wage and pays Hunter the minimum required for tipped employees. Det..

  Calculate the current book value of the machine

Viva Inc. had bought machine X for $15,500 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight line depreciation method, calculate the current book value of the machine.

  Utopia dance clubsinc rented an old warehouse for its

utopia dance clubsinc. rented an old warehouse for its newest club on oct.012010.to receive a discount utopia paid

  Computing amount of ending finished goods inventory

During its first year of operations, Martin Company paid $4,000 for direct materials and $8,500 for production workers' wages. What is the amount of ending finished goods inventory for the first year?

  Determine the present value of a stream of cash flows

Calculate the present value of a stream of cash flows based on discount rate of 8%. Annual cash flow is as follows: a. Year 1 = $100,000 b. Year 2 = $150,000.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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