Purchase Solution

Keever Corporation

Not what you're looking for?

Ask Custom Question

The Keever Corporation's purchasing manager obtained a special price on an aluminum alloy from a new supplier, resulting in a direct-material price variance of $9,800(F). The alloy produced more waste than normal, as evidenced by a direct-material quantity variance of $3,000(U), and was also difficult to use. This slowed worker efficiency, generating a $2,500(U) labor efficiency variance. To help remedy the situation, the production manager used senior line employees, which gave rise to a $900(U) labor rate variance. If overall product quality did not suffer, what variance amount is best used in judging the appropriateness of the purchasing manager's decision to acquire substandard material?

Purchase this Solution
Solution Summary

This solution is comprised of a detailed explanation to answer what variance amount is best used in judging the appropriateness of the purchasing manager's decision to acquire substandard material.

Solution Preview

The Keever Corporation's purchasing manager obtained a special price on an aluminum alloy from a new supplier, resulting in a direct-material price variance of $9,800(F). The alloy produced more waste than normal, as evidenced by a direct-material quantity variance ...

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Alpha Corporation is considering buying Beta Corporation for

    452748 Alpha Corporation is considering buying Beta Corporation for $2,400,000 cash. Beta Corporation has a $600,000 tax loss carryforward that could be used immediately by Alpha Corporation. Alpha Corporation pays tax at the rate of 35%.

  • Acqusition problem - example

    452740 Alpha Corporation is considering buying Beta Corporation: Calculate the cost of capital going forward. Alpha Corporation is considering buying Beta Corporation for $2,400,000 cash.

  • Business Law and different types of corporations

    a de facto corporation b. a corporation by estoppel c. a corporation quo warranto d. a de jure corporation The answer is not d. The answer is C.

  • Journal Entry Examples

    Edmonds Corporation common stock $28 $16,800 25 $15,000 200 shares of Schilling Corporation common stock $78 $15,600 800 shares of Schilling Corporation common stock $75 $60,000 a.)

  • Eligibility requirements for S corporation

    -An S corporation is permitted to own 100% of the stcok of a C corporation (S corporation cannot own more than 80% of another corporation. http://docs.google.com/gview?

  • Ratios comparison to the appropriate industry average

    What is the market price of the stock of this corporation? How does it compare with the intrinsic value of the corporation? Justify why you believe the corporation is not maximizing shareholder wealth.

  • Dwayne owns 50% of the stock of Tangerine (a C corporation)

    453918 Dwayne owns 50% of the stock of Tangerine (a C corporation) Dwayne owns 50% of the stock of Tangerine (a C corporation) and 50% of the stock of Heron Corporation (an S corporation), each of which incurs an operating loss of $80,000 during 2011

  • Basis of S corporation Shareholder

    response is 415 words, includes references The S corporation basis calculation shareholder basis is stock value plus loans from the owners to the S corporation plus S corporation profits minus S corporation loss minus distribution to owners (www.macymorris.com

  • Discussion of Taxation

    The main advantage from a tax standpoint to a corporation deals with "S" corporation status. Any corporation can elect "S" corporation status and by doing so, pay less in taxes.

View More Related Solutions