Ask Question
BusinessBusiness
10 August, 07:35

Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which direct materials variances will Hart investigate further?

+4
Answers (1)
  1. 10 August, 08:01
    0
    The Direct material Price Variance must be investigate as it is unfavorable.

    Explanation:

    The Direct material Price Variance is computed as:

    Actual Cost

    = Actual Quantity * Actual Price

    = 22,060 * $12.40

    = $273,544

    = Actual Quantity * Selling Price

    = 22,060 * $12.30

    = $271,338

    Direct material Price Variance = $271,338 - $273,544

    = - $2,206 (unfavorable)

    The Direct Material Quantity Variance is computed:

    Standard Cost = Standard Quantity * Standard Price

    = 24,480 * $12.30

    = $301,104

    Direct Material Quantity Variance = $301,104 - $271,338

    = $29,766 (Favorable)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Family Corporation, a corporation controlled by Buddy's family, redeems all of Buddy's stock. For the redemption to be treated as a sale, which one of the following conditions must be met? A.
Answers (1)
Carey is a waiter at a restaurant that pays a small hourly amount plus tips. Customers are not required to tip the waiter. Carey is especially attentive and friendly, and her tips average 25% of the restaurant charges.
Answers (1)
Investors and creditors are interested in the probability that their original investment or loan will eventually be returned, and that they will receive a reasonable return while their funds are invested or borrowed.
Answers (1)
Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $32.50 per share.
Answers (1)
The $40 million lottery payment that you have just won actually pays $2 million per year for 20 years. The interest rate is 8%. a. If the first payment comes in 1 year, what is the present value of the winnings? b.
Answers (1)
New Questions in Business
Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.
Answers (1)
Chegg In year 1, the capital stock was 6, the labor input was 3, and output was 12. In year 2, the capital stock was 7, the labor input was 4, and output was 14. What happened to total factor productivity between the two years?
Answers (1)
A company's adjustment for uncollectible accounts at year-end would include a: Multiple Choice Debit to Bad Debt Expense. Credit to Accounts Receivable. Debit to Accounts Receivable. Debit to Allowance for Uncollectible Accounts.
Answers (1)
Explain the differences between transactional and relationship marketing. How do these differences lead to increasing emphasis on logistical performance in supply chain management
Answers (1)
In the context of investing, the term market refers to
Answers (1)
Home » Business » Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which direct materials variances will Hart investigate further?
Sign Up Forgot Password?