Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost

1. Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one basket (unit): Standard Quantity Standard Price Standard Cost Direct Material 5 pounds $2.60 per pound $ 18.00 Direct Labor 1.25 hours $12.00 per hour $ 15.00 Total prime cost $ 33.00 Smith Industries made 3,000 baskets in July and used 15,500 pounds of material to make these units. Smith Industries paid $39,370 for the 15,500 pounds of material. A. What was the direct materials price variance for July? ( 1 point) B. What was the direct materials quantity variance for July? What is the total direct materials cost variance? (1 point) C. If Smith Industries used 15,750 pounds to make the baskets, what would be the direct materials quantity variance? (1 point) 2. Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. Compute the direct labor rate and time variances for the month of June (1 point), and also calculate the total direct labor variance (1 point)

With EXPLANATION PLZ.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing E Commerce Systems And IT Infrastructure

Authors: Pearson

1st Edition

0536903662, 978-0536903662

More Books

Students also viewed these Accounting questions

Question

Determine various types of real estate investment assets.

Answered: 1 week ago

Question

Which form of proof do you find least persuasive? Why?

Answered: 1 week ago