Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not ideal at this point, but the management is working

image text in transcribedimage text in transcribedimage text in transcribed

Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Materials 2 lb. 80.00 per lb. Direct labor Item Per unit Cost Labor 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $3.84 The January figures for purchasing, production, and labor are: The company purchased 221,800 pounds of raw materials in January at a cost of 784 a pound. Production used 221,800 pounds of raw materials to make 112,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $37,559 variable and $75,000 fixed. Answer the following questions about standard costs. (b) Your answer is correct. What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, e.g. 125.) Materials quantity variance ta 1760 i Favorable e Textbook and Media Attempts: unlimited - Your answer is partially correct. What is the total materials variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, e.g. 125.) Total materials variance $ Favorable e Textbook and Media Save for Later Attempts: unlimited Submit

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

Principles of Auditing An Introduction to International Standards on Auditing

Authors: Rick Hayes, Philip Wallage, Hans Gortemaker

3rd edition

273768174, 978-0273768173

More Books

Students also viewed these Accounting questions

Question

4. How does eff ective listening diff er across listening goals?

Answered: 1 week ago