Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unit quantity of 0.45 ounce of plastic per bottle. During the month of June, 240,000 bottles were produced using 110,000 ounces of plastic. The actual cost of plastic was $0.042 per ounce, and the standard price was $0.045 per ounce. There is no beginning or ending inventories of plastic. Required: Calculate the total variance for plastic for the month of June. Enter the amount as a positive number and select Favorable or Unfavorable.

Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unit quantity of 0.45 ounce of plastic per bottle. During the month of June, 240,000 bottles were produced using 110,000 ounces of plastic. The actual cost of plastic was $0.042 per ounce, and the standard price was $0.045 per ounce. There is no beginning or ending inventories of plastic. Required: Calculate the total variance for plastic for the month of June. Enter the amount as a positive number and select Favorable or Unfavorable.

Name: Young Inc. produces plastic bottles. Production of 16-ounce bottles ha
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unit quantity of 0.45 ounce of plastic per bottle. During the month of June, 240,000 bottles were produced using 110,000 ounces of plastic. The actual cost of plastic

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...

See similar textbooks

Similar questions

Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid $32 per hour for labor, for a total of $718,848. The standard hours per unit are 6.4, and the standard labor wage rate is $38.40 per hour. A. What are the actual hours worked? B. What are the standard hours for the units made? C. What is the direct labor rate variance for April? D. What Is the direct labor time variance for April? E. What is the total direct labor variance for April?
Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Smith Industries bought 15,500 pounds of material in the current period. There was a $250 unfavorable direct materials price variance. A. How much in total did Sitka pay for the 15,500 pounds? B. What is the direct materials quantity variance? C. What is the total direct material cost variance? D. What ii 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance? E. It there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material?
Gipple Corporation makes a product that uses a material with the quantity standard of 9.1 grams per unit of output and the price standard of $7.80 per gram. In January the company produced 5,200 units using 26,670 grams of the direct material. During the month the company purchased 29.200 grams of the direct material at $7.90 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is Multple Cholce $4732 F S2.920 U $4,732 U S2.920 F Prev 8 of 10 Mc Graw Hill 10:54 AM 22 10/5/2021 W 92 F AQI 61 Type here to search DELL Hor PgUp Insert Delete F12 PrtScr F10 F11 F8 F9 FZ
Holland Company is a garden products wholesale firm. In December, Holland Company expects to sell 84,000 bags of vegetable fertilizer at an average price of $8.75 per bag. Actual results are 85,000 bags sold at an average price of $8.50 per bag. REQUIRED: 1. Calculate the sales price variance for December. 2. Calculate the sales volume variance for December. 3. Calculate the overall sales variance for December. Explain why it is favorable or unfavorable. What if December sales were actually 83,500 bags? How would that affect the sales price variance? The sales volume variance? The overall sales variance?
Gipple Corporation makes a product that uses a material with the quantity standard of 7.6 grams per unit of output and the price standard of $6.30 per gram. In January the company produced 3,700 units using 25,170 grams of the direct material. During the month the company purchased 27,700 grams of the direct material at $6.50 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $5,624 F $5,540 U $5,624 U $5,540 F
Gipple Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is: Multiple Choice O O O O $300 F $305 F $305 U $300 U
a) Lala Company produces aluminium cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminium per can. During the month of April, 300,000 cans were produced using 1,250,000 ounces of aluminium. The actual cost of aluminium was RMO.09 per ounce and the standard price was RM0.08 per ounce. There are no beginning or ending inventories of aluminium. Required: i. Calculate the total variance for aluminium for the month of April. ii. Calculate the materials price and usage variances.
Reef Industries produces almond milk and uses a standard cost accounting system. A unit of finished goods is one gallon of almond milk. The standard price of almonds is $4.00 per pound and the standard quantity of almonds per gallon of milk is 1.20 pounds. During the month of July, the actual cost of the almonds purchased and used is $148,900, the price variance is $3,750 favorable, and the quantity variance is $11,650 unfavorable. How many gallons of almond milk did Reef produce in July? Round to the nearest whole number. O 29,375 gallons O 28,594 gallons O 32,667 gallons O 33,448 gallons O None of the above
During the month of March, Baker's Express purchased 10,000 pounds of flour at $1 per pound. At the end of March, Baker's Express found that it had a favorable materials price variance of $500. The standard cost per pound must be: a. $1.95. b. $1.05. c. $0.95. d. $1.00.
The standard price for material 3-291 is $3.65 per liter. During November, 2,000 liters were purchased at $3.60 per liter. The quantity of material 3-291 issued during the month was 1775 liters and the quantity allowed for November production was 1,825 liters. Calculate materials price variance
Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.6 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,000,000 ounces of aluminum. The actual cost of aluminum was $0.18 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the total variance for aluminum for the month of April. Enter amount as a positive number and select Favorable or Unfavorable.$fill in the blank 1