Question
1. Dvorak Company produced 2,800 units that require 11 standard pounds per unit at $3.5 standard price per pound. The company actually used 29,600 pounds
1.
Dvorak Company produced 2,800 units that require 11 standard pounds per unit at $3.5 standard price per pound. The company actually used 29,600 pounds in production.
Journalize the entry to record the standard direct materials used in production. For a compound transaction, if an amount box does not require an entry, leave it blank.
Work in Process | |||
Direct Materials Quantity Variance | |||
Materials |
2.
The following data relate to the direct materials cost for the production of 2,400 automobile tires:
Actual: | 49,400 lb. at $1.90 |
Standard: | 50,400 lb. at $1.85 |
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Price variance | $ | |
Quantity variance | $ | |
Total direct materials cost variance | $ |
b. The direct materials price variance should normally be reported to the . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started