Important information about Material Variances
Not what you're looking for?
Exercise 10-2 Material Variances [LO2]
Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 4,000 chopping boards using 11,000 board feet of hardwood. The hardwood cost the company $18,700.
The company's standards for one chopping board are 2.5 board feet of hardwood, at a cost of $1.80 per board foot.
Requirement 1:
(a) What cost for wood should have been incurred to make 4,000 chopping blocks? (Omit the "$" sign in your response.)
Cost incurred $
(b) How much greater or less is this than the cost that was incurred? (Omit the "$" sign in your response.)
Cost incurred is by $ than the actual cost incurred.
Requirement 2:
Break down the difference computed in requirement 1 above into a materials price variance and a materials quantity variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)
Materials price variance $
Materials quantity variance $
Purchase this Solution
Solution Summary
The solution explains how to calculate material variances
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Operations Management
This quiz tests a student's knowledge about Operations Management