Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 29 Nov 2017 My Price 8.00

Birchwood, Inc.

Direct material variances—solving for unknowns Birchwood, Inc., manufactures end tables, armchairs, and other wood furniture products from high- quality materials. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling direct material price variances, and production managers are responsible for controlling usage variances. During August, the following results were reported for the production of Knotty Birch armchairs:

 

 

 

 

 

 

Required:

 

a.       Calculate the actual price paid per board foot purchased.

 

b.      Calculate the standard quantity of materials allowed (in board feet) for the num- ber of units produced.

 

c.       Calculate the direct materials usage variance.

 

 

 

 

 

 

 

d.      What is the most likely explanation for the price and usage variances? Is this a good trade-off for management of Birchwood, Inc., to make? Explain your answer.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Nov 2017 10:11 PM My Price 8.00

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