The following data relate to the direct materials cost for the production of 20,000 automobile tires: a.

Question:

The following data relate to the direct materials cost for the production of 20,000 automobile tires:

Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000

a. Determine the price variance, quantity variance, and total direct materials cost variance.

b. To whom should the variances be reported for analysis and control?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 9780538475006

24th Edition

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

See More Books

Question Posted: Sep 25, 2020 07:31 AM

See More Questions

Direct Materials Variances The following data relate to the direct materials cost for the production of 20,000 automobile tires: Actual: 80,000 Ibs. at $2.65 $212,000 Standard: 86,000 Ibs. at $2.50...
The following data relate to the direct materials cost for the production of 15,000 automobile tires: a. Determine the price variance, quantity variance, and total direct materials cost variance. b....
The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 51,700 lbs. at $1.70 $87,890 Standard: 50,700 lbs. at $1.75 $88,725 a. Determine the...
What are the three main ways in which interest groups use the courts to affect public policy? Discuss one example of a successful use of the courts by an interest group.
Mike and Cheryl and an adjusted gross income of a dollars. Mike just got a $3K raise and Cheryl got a $1.5K raise. They are considering moving to a new house with monthly mortgage payments of m...
Do you think that training evaluation must be all or nothing; that is, must it totally determine the worth of training or else not be done at all?
7. Suppose you observe the following month-end stock prices for stocks A and B: Day 0 1 2 3 4 Stock A 100 105 102 97 100 Stock B 100 105 150 97 100 For each stock: a. Compute the mean monthly...
Tomorrows Electronic Center began October with 90 units of merchandise inventory that cost $ 70 each. During October, the store made the following purchases: Oct. 3 20 units @ $ 75 each 12 40 units @...
Instant answer within 5 minutes please don't waste my turn 40. X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2:1. After the final accounts have been prepared, it was...
1. Choose one job, such as front desk clerk. Based on any information you have (including job descriptions you may have created in other chapters), write a list of duties, competencies, and...
Shakti Power Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March ........$60,000 April...
Kraft Heinz Company (KHC) uses standards to control its materials costs. Assume that a batch of ketchup (6,000 pounds) has the following standards: The actual materials in a batch may vary from the...
Show that by interpreting the integrals as areas. Si e-*dx = {, /-In y dy
Medical Helicopters In a study of helicopter usage and patient survival, results were obtained from 47,637 patients transported by helicopter and 111,874 patients transported by ground (based on data...
On January 1, 20X1, Laketown Company (the user) leased a truck for a seven-year period under a FINANCE LEASE and agreed to pay an annual lease payment of $6,000 at the end of each year. The interest...
ces Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this...
2. An Annual General Meeting (AGM) is a meeting conducted annually where the members of an organization gather to discuss and vote on key issues. Public companies hold annual general meetings for...
The 3 P's of Sustainability refers to: O The groups of people that environmental efforts effect. O People, Planet, Profit O Population, Productivity, Principled None of the Above. Question 21 2...
Does each of the configurations in Figure Q 41.6 represent a possible electron configuration of an element? If so, (i) identify the element and (ii) determine whether this is the ground state or an...
Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...
On March 31, 2010, the balances of the accounts appearing in the ledger of El Dorado Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the...
Two items are omitted in each of the following four lists of income statement data. Determine the amounts of the missing items, identifying them byletter. Sales Sales returns and allowances Sales...
Identify the errors in the following income statement and prepare a corrected incomestatement: ARMORTEC COMPANY Income Staterment For the Year Ended February 28, 2010 Revenue from sales: Sales...
Suppose I have computed the cost of carbon per mile for my car at 0 . 0 1 2 per mile. Assume that the interest rate is 4 % and that I drive the car 2 8 , 0 0 0 miles per year. What is the present...
Imagine that in stable growth period, the firm earns ROIC of 10% and has after tax EBIT of 200 and reinvestment $ of 40. What is the steady state growth rate? 20% O 10% 2%
Tanner-UNF Corporation acquired as a long-term investment $160 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until...

The following data relate to the direct materials cost for the production of 20,000 automobile tires: a.

Question:

Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000

Step by Step Answer:

a Price variance Direct Materials Price Variance Actual Price Standard Price Actual Quantity 265 per ...View the full answer

Accounting

Students also viewed these Business questions