A company manufactures a single product L, for which the standard material cost is as follows.
??????????????????????????????????????????????????????? $ per unit
Material 14 kg x $3?????????????????????????????? 42
During July, 800 units of L were manufactured, 12,000 kg of material were purchased for $33,600, of which 11,500 kg were issued to production.
SM Co values all inventory at standard cost.
What are the material price and usage variances for July?
Since inventories are valued at standard cost, the material price variance is based on the materials purchased.
??????????????????????????????????????????????????????????????????????????????????????????????????????????????? $
12,000?kg material purchased should cost (x$3)??????????????????????????????? 36,000
but did cost???????????????????????????????????????????????????????????????????????????????????????? 33,600
Material price variance?????????????????????????????????????????????????????????????????????? 2,400(F)
800? units manufactured should use (x 14 kg)???????????????????????????????????11,200 kg???????
but did use????????????????????????????????????????????????????????????????????????????????????????? 11,500kg
Usage variance in kg?????????????????????????????????????????????????????????????????????????? 300kg(A)
x standard price per kg?????????????????????????????????????????????????????????????????????????? x$3
Usage variance in?????????????????????????????????????????????????????????????????????????????? $900 (A)?????????????????????
多做幾道
Which of the following statements about management accounting information is/are true?
(i) They must be stated in purely monetary terms.
(ii) Limited companies must, by law, prepare management accounts.
(iii) They serve as a future planning tool and are not used as an historical record.
Which of the following statements is/are correct?
(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.
(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.
(iii) Information is data that has been processed into a form meaningful to the recipient.
Good information should have certain qualities. Which of the following are qualities of good information?(i) Complete(ii) Extensive(iii) Relevant(iv) Accurate
Monthly variance reports are an example of which one of the following types of management information?
Which of the following statements is/are correct?
(i) Information for decision-making should incorporate uncertainty in some way
(ii) The data used to prepare financial accounts and management accounts are the
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