Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the materials purchasing manager purchased 12,000

The materials purchasing manager purchased 12,000 units of component K2X from a new source at...

60.1K

Verified Solution

Question

Accounting

The materials purchasing manager purchased 12,000 units of component K2X from a new source at a price $20 below the standard unit price of $200. These components turned out to be of extremely poor quality with defects occurring at three times the standard rate of 6%. The higher rate of defects reduced the output of workers (who earn $12 per hour) from 20 units per hour to 16 units per hour on the units containing the discount components. Each finished unit contains one K2X component. To appease the workers (who were irate at having to work with inferior components), the production manager agreed to pay the workers an additional $0.50 for each of the components (good and bad) in the discount batch. Variable manufacturing overhead is applied at the rate of $6.00 per direct labor hour. The defective units also caused a 25 hour increase in total machine hours. The actual cost of electricity to run the machines is $2.00 per hour.
A. Effect on materials price variance:
B.Effect on materials quantity variance:
C. Effect on labor rate variance:
B. Effect on labor efficiency variance:
C.Effect on variable overhead spending variance:
D.Effect on variable overhead efficiency variance:

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

Biology
1.2K views

Do you think there is a stigma associated with mentally ill persons today? Why or why...

Chemistry
1.2K views

What do enzymes do and how do they do it (this question is intentionally vague and...

Physics
1.2K views

c 99 m s d 86 m s The second s hand of a watch...

Geometry
1.2K views

Write down your answer to the following question enter number only 1 How many times...

Calculus
1.2K views

Suppose a certain country s population has constant relative birth and death rates of 97...

Algebra
1.2K views

23 A rectangular crate of bottles holds 72 bottles The rows across the width of...

Algebra
1.2K views

Exercises 65 74 Use the graph of f to determine intervals where fis increasing and...

Accounting
1.2K views

Intermediate Accounting 2-Worksheet;Ches. 14+15:2914\2021;Dr Ghaleb Abu Rummon;JU 15. PPP Corporation has issued 2,000...

Accounting
1.2K views

The results of the guess who technique should be interpreted as evidence of how students...

Accounting
1.2K views

Student Name 91 For the balance sheet prepare a VERTICAL Analysis (Do not perform this...

Accounting
1.2K views

E-F:13-30 Journalizing cash and stock dividends (Learning Objective 4) Self-Defense Schools, Inc. is...

Accounting
1.2K views

QUESTION4 Use the followingInformation to draw the estlmated cash flow statement for the next four...