Purchase Solution

Monthly cost analysis - Brown Company

Not what you're looking for?

Ask Custom Question

The following activity took place in Brown Company during May:

Number of units produced.... 450 units
Material purchased.... 1,500 feet
Material used in production... 720 feet
Cost per foot of material purchased... $3

The standard cost card indicates that 1.5 feet of materials are allowed for each unit of product. The standard cost of the materials is $4 per foot.

a. Complete the following analysis of direct materials cost for the month:

Annual Quantity of Actual Quantity of Standard Quantity allowed
Inputs at Actual Price Inputs, at Standard Price for Output, at Standard Price
(AQ * AP) (AQ * SP) (SQ * SP)
____________ ____________ ____________
____________ ____________ ____________
____________ ____________ ____________

↑_____________________↑ ↑

_____________ │
_____________ │

↑____________________↑

b. Redo the above analysis of direct materials cost for the month, using the following formulas:

Materials price variance = AQ AP - SP)

Materials quantity variance = SP (AQ - SQ)

Attachments
Purchase this Solution
Solution Summary

This solution is comprised of a detailed explanation to complete the analysis of direct materials cost for Brown Company.

Solution Preview

The following activity took place in Brown Company during May:

Number of units produced.... 450 units
Material purchased.... 1,500 feet
Material used in production... 720 feet
Cost per foot of material purchased... $3

The standard cost card indicates that 1.5 feet of ...

Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Basic Social Media Concepts

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

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Internal Control for the Brown Company

    260961 Internal Control (Brown Company) Brown Company provides office services for more than 100 small clients including: A. Supplying temporary personnel B. Providing monthly bookkeeping services C. Designing and printing small brochures D.

  • Creating a Memorandum

    Brown we discussed an analysis of the recent monthly financial statements, inspection of the accounting records and a discussion of policies with the company's chief accountant. Ms. Brown took me on a guided tour of the facility as well. Ms.

  • Monthly Cash Budget: Cyrus Brown Manufacturing

    Prepare a monthly cash budget for Cyrus Brown Manufacturing for the 9-month period of March through November. Use Microsoft Excel to prepare the monthly cash budget.

  • reimbursable costs and disputes

    The contract was cost plus award fee reimbursement contract. Summary of the company: Kellogg Brown & Root Services is an American engineering, procurement, and construction company.

  • Word Problem

    413250 Average Monthly Goals by the End of Summer A student at Brown U wants to become his own employer by using his car as a taxi for the summer. It costs the student $120.00 a month to insure his car for the 4 months of summer.

  • 5-61 (Internal Controls-Office Service Client)

    Accounting records showed Debit Cost of Services; Credit Cash or Accounts Payable or Accrued Payroll. e. Monthly bookkeeping services were usually paid for when the work was complete.

  • Cyrus Brown Manufacturing: Monthly Cash Budget

    Prepare a monthly cash budget for Cyrus Brown Manufacturing for the nine month period, March through November. b. Based on your findings in part b, will the company need any outside financing? c.

  • Cyrus Brown Manufacturing (CBM)

    Prepare a monthly cash budget for Cyrus Brown Manufacturing for the nine month period, March through November. Based on your findings in part a, will the company need any outside financing?

  • Cash Budget for Cyrus Brown to Forecast Next 9 Months

    Group Project Guidelines: As a group, prepare a monthly cash budget for Cyrus Brown Manufacturing for the 9-month period of March through November. Use Microsoft Excel to prepare the monthly cash budget.

View More Related Solutions