QUESTION 3 in Marigold Corp \'s income statement, they report actual gross profi
ID: 2530096 • Letter: Q
Question
QUESTION 3 in Marigold Corp 's income statement, they report actual gross profit of $41500 and the following variances Materials price Matenals quantity Labor price Labor quantity Overhead Mangold would report gross profit at standard of s 420 F 600 F 420 U 1,000 F 900 F a $36,500 b $42,340 @ ? S35 660 d $39,000 QUESTION 4 Mangold Corp produces a product requiring 8 pounds of material at $1 50 per pound Marigold produced 9.600 $27.000 unfavorable materials quantity variance How many pounds of direct matenial did Marigold use during 2016 units of this product during 2016 resulting in a a76.800 pounds b 153 600 pounds O c 117,300 pounds d 94800 pounds l Save All Ansiwers to save all answers.Explanation / Answer
Answer 3:
Particulars
Amount ($)
Amount ($)
Actual gross profit reported
41500
Add: Unfavourable variances:
Labour price
420
Total unfavourable variances
420
Gross profit after addition (41500 +420)
41920
Less: Favourable variances:
Material price
420
Materials quantity
600
Labour quantity
1000
Overhead
900
Total favourable variances
2920
Standard gross profit (41920 - 2920)
39000
Answer 4:
Standard material cost
Number of units
9600
Materials required for each unit
8 Pounds
Material price per pound ($)
1.5
Total materials required for 9600 units (9600 x 8)
76800
Add: Extra quantity used in production
Unfavourable materials quantity variance
27000
Material price per pound ($)
1.5
Extra materials required (27000 /1.5)
18000
Pound of materials used in 2018 (76800 + 18000)
94800
Answer 3:
Particulars
Amount ($)
Amount ($)
Actual gross profit reported
41500
Add: Unfavourable variances:
Labour price
420
Total unfavourable variances
420
Gross profit after addition (41500 +420)
41920
Less: Favourable variances:
Material price
420
Materials quantity
600
Labour quantity
1000
Overhead
900
Total favourable variances
2920
Standard gross profit (41920 - 2920)
39000
Answer 4:
Standard material cost
Number of units
9600
Materials required for each unit
8 Pounds
Material price per pound ($)
1.5
Total materials required for 9600 units (9600 x 8)
76800
Add: Extra quantity used in production
Unfavourable materials quantity variance
27000
Material price per pound ($)
1.5
Extra materials required (27000 /1.5)
18000
Pound of materials used in 2018 (76800 + 18000)
94800
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