Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
DES Company manufactures folding chairs. Direct materials include hard plastic for the seat and back and metal beams for the legs. The standard cost sheet
DES Company manufactures folding chairs. Direct materials include hard plastic for the seat and back and metal beams for the legs. The standard cost sheet for a single chair include the following direct materials information:
! Required information The following information applies to the questions displayed below.] DES Company manufactures folding chairs. Direct materials include hard plastic for the seat and back and metal beams for the legs. The standard cost sheet for a single chair includes the following direct materials information: Material Hard plastic Metal beams Quantity 2 sheets 4 beams Cost per Unit $ 2.89 per sheet $ 1.30 per beam Total Cost $ 5.78 5.20 $ 10.98 Last month, DES purchased 29,100 sheets of hard plastic at a cost of $75,660. The company also purchased 58,700 metal beams at a cost of $83,354. DES produced 14,700 chairs. There was no beginning or ending inventory of plastic sheets or metal beams during the month. Required: 1. Compute the following for last month's operations at DES Company: a. The price variance for hard plastic. Indicate whether the variance is favorable or unfavorable. b. The price variance for metal beams. Indicate whether the variance is favorable or unfavorable. C. The total direct materials price variance. Indicate whether the variance is favorable or unfavorable. d. The usage variances for hard plastic and metal beams, and the total direct materials usage variance. Indicate whether each variance is favorable or unfavorable. Pra 3 of 4 Next (Do not round intermediate calculations. Round your answers to the nearest whole a. Price variance for hard plastic b. Price variance for metal beams c. Total direct materials price variance d. Plastic usage variance Metal usage variance Total materials usage varianceStep by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started