Calculate the direct materials price variance for the month

Assignment Help Financial Accounting

Reference no: EM131214339

We make small elevators which can hold a maximum of ten passengers. One of the direct materials we use is industral strength carpetig for the floor of the elevator. the direct materials quantity stadard we use is 8 squares yards for each elevator. The standard cost of this carpeting is $12 per square yard. Last month the carpeting was purchased for $11 per square yard, and the production department used an average of 8.5 square yards of carpet to complete a total of 90 elevators.

A. calculate the direct materials price variance for the month

B. calculate the direct materials quantity variance for the month

C. what is the total variance for the month?

Reference no: EM131214339

Questions Cloud

Constitute an increase in economic resources : Printing and distribution of invoices does not constitute an increase in economic resources. On the other hand, can you give examples of what should be included in REA diagram? Remember that REA specifies the domain rules assuring soundness and consi..

Business software applications from the business perspective : Printing and distribution of invoices does not constitute an increase in economic resources. On the other hand, can you give examples of what should be included in REA diagram? Remember that REA specifies the domain rules assuring soundness and consi..

When measuring impairment loss for long-term operating asset : When measuring an impairment loss for a long-term operating asset, must firms determine the fair market value using a discounted cash flow model? Explain.

The end of the period for the completed job : The following information is available at the end of the period for the completed job. What is the unit cost for this job? Using the information above prepare the journal entry to record the adjustment for overapplied overhead.

Calculate the direct materials price variance for the month : We make small elevators which can hold a maximum of ten passengers. One of the direct materials we use is industral strength carpetig for the floor of the elevator. the direct materials quantity stadard we use is 8 squares yards for each elevator. ca..

Calculate the standard unit cost : Using the following information, calculate the standard unit cost of this product.

Should preferred stock be recognized as a liability : An unsettled question in accounting for stock is: Should preferred stock be recognized as a liability, or should it be considered equity? Under International Financial Reporting Standards, preferred stock (preference shares) often is reported as debt..

What is the amount of budgeted volume-standard volume : The Starr Company has established a standard cost system for the manufacture of a single consumer product, which is branded under the name Vinbit. Starr Company’s overhead is applied through the use of direct labor hours as the single cost driver. Ut..

Calculation of direct labor wage rate-efficiency variances : The Starr Company has established a standard cost system for the manufacture of a single consumer product, which is branded under the name Vinbit. Prepare a calculation of the direct material price and quantity variances for the month of May. All var..

User Account

All Pages