Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 17-46 (static) variable cost variances: ma

Problem 17-46 (Static) Variable Cost Variances: Materials Purchased and Used Are Not Equal (LO 17-2,...

70.2K

Verified Solution

Question

Accounting

image
Problem 17-46 (Static) Variable Cost Variances: Materials Purchased and Used Are Not Equal (LO 17-2, 7) Larned Company makes a storage box using metal. The company uses a standard costing system. Varlable overhead is allocated on the basis of direct material usage (pounds). Overhead is allocated to units based on expected production of 13,500 units. Larned maintains a materials inventory, so the amount of material used is not necessarlly the same as the amount of material purchased in any one month. The standard cost sheet for a single box follows: March financial results show that the average purchase price of metal was $8.20 per pound. The purchase price variance was $1,540. The variable overhead efficiency variance was $1,200 favorable. Good output produced totaled 12,000 units. Required: a. How many pounds of metal were purchased in March? b. What was the direct materials efficiency variance in March? Note: Indicate the effect of this variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. c. How many pounds of metal were used in March

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students