Question
1. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $138 Units
1.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $138 |
Units in beginning inventory | 0 |
Units produced | 3,060 |
Units sold | 2,500 |
Units in ending inventory | 560 |
Variable costs per unit: | |
Direct materials | $41 |
Direct labor | $17 |
Variable manufacturing overhead | $14 |
Variable selling and administrative | $9 |
Fixed costs: | |
Fixed manufacturing overhead | $113,220 |
Fixed selling and administrative expenses | $32,500 |
The total gross margin for the month under absorption costing is: |
$72,500
$17,500
$131,700
$142,500
2.
Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:
Number of units produced | 6,900 |
Variable costs per unit: | |
Direct materials | $51 |
Direct labor | $45 |
Variable manufacturing overhead | $4 |
Variable selling and administrative expense | $7 |
Fixed costs: | |
Fixed manufacturing overhead | $227,700 |
Fixed selling and administrative expense | $531,300 |
There were no beginning or ending inventories. The absorption costing unit product cost was: |
$96 per unit
$133 per unit
$100 per unit
$217 per unit
3.
The following materials standards have been established for a particular product: |
Standard quantity per unit of output | 4.3 | grams |
Standard price | $14.00 | per grams |
|
The following data pertain to operations concerning the product for the last month: |
Actual materials purchased | 3,200 | grams |
Actual cost of materials purchased | $ 37,280 | |
Actual materials used in production | 2,500 | grams |
Actual output | 510 | units |
|
The direct materials purchases variance is computed when the materials are purchased. |
Required: | |||||||||||||||||||||||||||||||||||
a. | What is the materials price variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) b.
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