What is the materials price variance for december

Assignment Help Accounting Basics

Reference no: EM131931763

Problem

Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 2.0 ounces $4.00 per ounce $8.00 Direct labor 0.8 hours $10.00 per hour $8.00 Variable overhead 0.8 hours $2.50 per hour $2.00 The company reported the following results concerning this product in December. Originally budgeted output 4,800 units Actual output 4,600 units Raw materials used in production 7,200 ounces Actual direct labor-hours 3,880 hours Purchases of raw materials 8,800 ounces Actual price of raw materials 3.90 per ounce Actual direct labor rate 12.00 per hour Actual variable overhead rate 3.50 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. What is the materials price variance for December?

Reference no: EM131931763

Questions Cloud

How should she and her company address the possible problems : Given the fact that each of its stores has only a handful of em- ployees, is her company covered by equal rights legislation?

Compute odd wallow drinkss breakeven point in units per year : dd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. Compute Odd Wallow Drinks's break-even point in units per year.

Are the actions by the company legal : Union Busting Plastico Corporation hears through the "grapevine" that its employees are unhappy with the working conditions and wages being paid.

What do those observations suggest as effective ways your : What do those observations suggest as effective ways your company could avoid such misjudgments and thereby achieve more mutually acceptable.

What is the materials price variance for december : Oddo Corporation makes a product with the standard costs: Standard Quantity or Hours Standard Price. What is the materials price variance for December?

What is amount of periodic annual after-tax net cash-flow : What is the amount of periodic annual after-tax net cash-flow from the use of this new machine? Is the purchase of this machine acceptable based on its NPV?

Describe the strategy that east asia used : Describe the strategy that East Asia used from the 1970s to the 1990s to achieve high rates of economic growth.

What is the reorder point : This company operates 300 days per year. On average, it takes 5 working days to receive an order from their supplier. What is the reorder point?

How much warranty expense is reported for january : How much warranty expense is reported for January 2013? What is the balance of the Estimated Warranty Liability account as of December 31, 2012?

User Account

All Pages