d $3.92 15)Dranox Co. makes a unit that requires 5.2 pounds of material. The was
ID: 2597488 • Letter: D
Question
d $3.92 15)Dranox Co. makes a unit that requires 5.2 pounds of material. The waste and spoilage lewances are respectively 6 and 2 pound. The purchase price is $4 perpound, a bthe upplier. Per pound freight and receiving and handling costs are discount is offered s0.20 and so t7 The direct materials standard quantity per unit is a. 5.2 pounds b. 5.5 pounds c. 5.8 pounds d. 6.0 pounds. 16) Scope Enterprises planned to use 1 meter of plastic to make each of its units. The us were budgeted at $162 a meter. However, the plastic cost Scope $160 per meter. Scope made 7,800 units; it had planned to make 6,800 units. In total, 7,000 meters were used for production. How much is the total materials variance? a. $146,300 U b. $135,000 U c. $140,000 F d. $143,600 F 17)Acorn Inc. developed the following per-unit standards for its product: 2 pounds of direct materials at $6 per pound. Last month, 1,600 pounds of direct materials were purchased for $6,700. The direct materials price variance for last month was a. $6,700 favorable. b. $2,900 favorable c. $3,200 favorable. d. $2,900 unfavorable. 18) Acorn's standard wage rate is $15 per direct labor hour. If the actual direct labor payroll was $130,000 for 8,000 direct labor hours worked, the direct labor price (rate) variance is a. $5,400 unfavorable. b. $10,000 unfavorable. c. $13,000 unfavorable. d. $13,000 favorable.Explanation / Answer
Solution:
All the question are separate. I am answering question 15.
Question # 15
Raw material requirement per unit = 5.2 pounds
Waste and Spoilage allowance = 0.6 + 0.2 = 0.8 pounds
There is a problem whether waste and spoilage allowance is already included in 5.2 pounds of material or not.
If it is included in 5.2 pounds, so the standard quantity of direct material per unit is 5.2 pounds
If waste and spoilage is not included in 5.2 pounds, the direct material standard quantity per unit is = 5.2 + 0.8 = 6 pounds per unit
As per question, the first line is a unit that requires 5.2 pounds of material. From this we can assume that waste and spoilage is included in 5.2 pounds.
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.