# Gonzalez Company makes a product that is expected to use 1.2 pounds of material per unit of...

## Question:

Gonzalez Company makes a product that is expected to use 1.2 pounds of material per unit of product. The material has a standard cost of $2 per pound. Gonzalez actually used 1.25 pounds of material per unit of product made in January. The actual cost of the material was $1.95 per pound. Based on this information alone, the condition of the variances for the January production would be:

A. unfavorable for price and favorable for usage.

B. favorable for price and favorable for usage.

C. favorable for price and unfavorable for usage.

D. unfavorable for price and unfavorable for usage.

## The Direct Materials Variances

The price and usage variances are two variances calculated to analyze the total difference between the actual and standard direct materials variance. These variances are favorable if the standard is more than the actual amount or quantity, and unfavorable if the actual is higher than the standard.

## Answer and Explanation: 1

Become a Study.com member to unlock this answer! Create your account

View this answer

**The correct option is C.**

The actual price ($1.95) was lower than the budgeted (or standard) price ($2) per pound, so the price variance is...

See full answer below.

#### Ask a question

Our experts can answer your tough homework and study questions.

Ask a question Ask a question#### Search Answers

#### Learn more about this topic:

from

Chapter 13 / Lesson 3Learn how to calculate variances with direct materials and direct labor. Variances are changes to the costs an organization has budgeted, they can be either favorable or unfavorable.

#### Related to this Question

- Global Company makes a product that is expected to use 2.2 pounds of material per unit of product. The material has a standard cost of $2 per pound. Global actually used 2.3 pounds of material per unit of product made in January. The actual cost of materi
- Global Company makes a product that is expected to use 2.2 pounds of material per unit of product The material has a standard cost of $2 per pound. Global actually used 2.3 pounds of material per unit
- The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 7,000 units, 41,000 pounds of material were used at a cost of $51 per pound. What is the total direct materials cost
- The standard materials cost to produce 1 unit of Product R is 4 pounds of material at a standard price of $44 per pound. In manufacturing 9,000 units, 35,000 pounds of material were used at a cost of $45 per pound. What is the total direct materials cost
- The standard materials cost to produce 1 unit of Product R is 9 pounds of material at a standard price of $53 per pound. In manufacturing 5,000 units, 44,000 pounds of material were used at a cost of $54 per pound. What is the total direct materials cost
- The standard materials cost to produce 1 unit of Product R is 4 pounds of material at a standard price of $40 per pound. In manufacturing 8,000 units, 31,000 pounds of material were used at a cost of $41 per pound. What is the total direct materials cost
- The standard materials cost of a product is $40 per unit, based on 10 pounds of raw materials at a standard cost of $4 per pound. During January 20X9, 1,000 units of product were produced, using10,200 pounds of raw material at a cost of $4.20 per pound.
- The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $44 per pound. In manufacturing 6,000 units, 35,000 pounds of material were used at a cost of
- The standard materials cost to produce 1 unit of Product R Is 7 pounds of material at a standard price of $49 per pound. In manufacturing 6,000 units, 41,000 pounds of material were used at a cost of
- The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $52 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of
- Owen's Company's Product S has a standard materials cost of 4 pounds of material at $4 per pound. If 40,000 units were produced using 164,000 pounds of material at a cost of $639,600, which of the following statements is true? A. The materials price vari
- A company has established 5 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,300 units of this product, using 6,700 pounds of Mat
- A company has established 4 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,400 units of this product, using 6,000 pounds of Mat
- A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,400 units of this product, using 7,200 pounds of Mat
- A company has established 5 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,200 units of this product, using 6,100 pounds of Mat
- Feller Company has a standard of 9.5 pounds of materials per unit, at $4.00 per pound. In producing 1, 220 units. Feller used 11, 600 pounds of materials at a total cost of $47, 500. What is Feller's
- A company has established 4 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,300 units of this product, using 5,400 pounds of
- Compute materials and labor variances: Nona Inc. which produces a single product, has prepared the following standard cost sheet for one unit of the product. |Direct materials (8 pounds at $2.50 per p
- White Company manufactures a single product, the AZQR. The standards for materials for each unit have been set as 5 pounds ofKR-27 at a standard cost of $35.00 per pound. During May, the company purchased 500 pounds and used 512 pounds of KR-27 to make100
- In the month of May, Williams Company produced 5561 units of a product. The standard cost card indicates the following materials standard per unit of output: 1 kilogram @ $0.5 = $0.50. During May, 15676 kilograms of material were purchased at a total cost
- Simba Company's standard materials cost per unit of output is $10.00 (2 pounds x $5). During July, the company purchases and uses 3,200 pounds of materials costing $16,192 in making 1,500 units of fin
- Simba Company's standard materials cost per unit of output is $10.56 (2.40 pounds x $4.40). During July, the company purchases and uses 3,300 pounds of materials costing $17,820 in making 1,300 units
- Simba Company's standard materials cost per unit of output is $9.02 (2.20 pounds x $4.10). During July, the company purchases and uses 2,772 pounds of materials costing $14,692 in making 1,400 units o
- Simba Company's standard materials cost per unit of output is $9.24 (2.10 pounds x $4.40). During July, the company purchases and uses 2,700 pounds of materials costing $13,770 in making 1,300 units o
- Simba Company's standard materials cost per unit of output is $8.00 (2.00 pounds x $4.00). During July, the company purchases and uses 3,300 pounds of materials costing $17,820 in making 1,500 units o
- White Company manufactures a single product, the AZQR. The standards for materials for each unit have been set as 5 pounds of KR-27 at a standard cost of $35.00 per pound. During May, the company purchased 500 pounds and used 512 pounds of KR-27 to make 1
- Brown Company manufactures a single product, the AZQR. The standards for materials for each unit have been set as 5 pounds of KR-27 at a standard cost of $35.00 per pound. During May, the company purchased and used 512 pounds of KR-27 to make 100 units of
- Buerhle Company purchased (at a cost of $11,650) and used 2,380 pounds of materials during May. Buerhle's standard cost of materials per unit produced is based on 2 pounds per unit at a cost of $5 per pound. Production in May was 1,090 units. Compute the
- 1. A product has a standard materials usage and cost of 4 pounds per unit at $7.00 per pound. During the month, 2,400 pounds of materials were purchased at $7.30 per pound. Production for the month t
- Simba Company's standard materials cost per unit of output is $11.52 (2.40 pounds * $4.80). During July, the company purchased and uses 2,800 pounds of materials costing $14,280 in making 1,200 units of the finished product. Compute the total, price, and
- Simba Company's standard materials cost per unit of output is $8.61 (2.10 pounds * $4.10). During July, the company purchased and uses 2,900 pounds of materials costing $15,080 in making 1,300 units of the finished product. Compute the total, price, and
- Kensie Company has a standard of 8.5 pounds of materials per unit, at $1.30 per pound. In producing 1,460 units. Kensie used 13,800 pounds of materials at a total cost of $20,000. What is Kensie's mat
- Knappert Corporation makes one product and has provided the following information a. Each unit of finished goods requires 3 pounds of raw materials. The raw materials cost $5.00 per pound. b. The dire
- Gepp Manufacturing Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product: Materials quantity per unit 1 pound Mate
- Simba Company's standard materials cost per unit of output is $9.68 (2.20 pounds * $4.40). During July, the company purchases and uses 3,000 pounds of materials costing $15,600 in making 1,300 units of the finished product. Compute the total, price, and
- Simba Company's standard materials cost per unit of output is $9.00 (2.00 pounds x $4.50). During July, the company purchases and uses 3,080 pounds of materials costing $16,632 in making 1,400 units of the finished product. Compute the total, price, and
- Simba Company's standard materials cost per unit of output is $9.87 (2.10 pounds x $4.70). During July, the company purchases and uses 2,800 pounds of materials costing $14,840 in making 1,300 units of finished product. Compute the total, price, and qua
- Simba Company's standard materials cost per unit of output is $10.35 (2.30 pounds * $4.50). During July, the company purchases and uses 3,105 pounds of materials costing $16,767 in making 1,500 units of the finished product. Compute the total, price, and
- Nona Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. |Direct materials (8 pounds at $3.00 per pound)|$24.00 |Direct labor (2 hours
- XYZ Company purchases materials to produce its product. For each unit produced the company expects to use 4 pounds of material at a cost of $2.25 per pound. During the month, the company purchased 40,000 pounds of material for $94,000 and used the 40,000
- Tree Company produces a single product. The accountant has provided the following standard cost information per unit: Variable Standard cost of one unit: Material 5 pounds at $4 per pound 20 per produ
- Assume that the standard cost to make one unit of product includes 15 pounds of raw materials at a price of 3 dollars per unit. In July, 34,000 pounds of raw materials were purchased for 100,800 dolla
- Simba Company's standard materials cost per unit of output is $8.00 (2.00 poundsx $4.00). During July, the company purchases and uses 1,800 pounds of materials costing $9,540 in making 1,000 units of
- Neville Company's standard materials cost per unit of output is $10 (2 pounds * $5). During July, the company purchases and uses 3,800 pounds of materials costing $19,570 in making 1,530 units of the finished product. Compute the total, price, and quanti
- Gepp Manufacturing Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product: Materials quantity per unit 1 pound Materials price $12.50 per pound Labor quantity per unit 2
- A product has a standard materials usage and cost of 4 pounds per unit at $7.00 per pound. During the month, 2,400 pounds of materials were purchased at $7.30 per pound. Production for the month total
- All Waterway Industries produces a product requiring 4 pounds of material costing $3.50 per pound. During December, All Waterway purchased 3,800 pounds of material for $12,768 and used the material to produce 100 products. What was the materials price var
- Samba Company's standard materials cost per unit of output is $9.68 (2.20 pounds x $4.40). During July, the company purchases and uses 2,662 pounds of materials costing $14,375 in making 1,100 units o
- Perkins Company, which has a standard cost system, had 500 pounds of raw material X in its inventory at June 1, purchased in May for $1.20 per pound and carried at a standard cost of $1.00 per pound. The following information pertains to raw material X fo
- Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. |Direct materials (10 pounds at $3.60 per pound)|$36.00 |Direct labor (5 hou
- A company uses a standard costing system and the standard materials cost per unit of their product is Pound 20. The actual level of production of this product for a period was 3,200 units. The company recorded the following variances during the period: Ma
- Wissota Co. has a material standard of 2 pounds per unit of output. Each pound has a standard price of $12 a pound. During February, Wissota Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What are the direct materials price var
- Kensie Company has a standard of 8.7 pounds of materials per unit, at $1.40 per pound. In producing 1,440 units, Kensie used 13,700 pounds of materials at a total cost of $21,000. What is Kensie's materials quantity variance?
- Ceelo Company purchased (at a cost of $17,655) and used 3,300 pounds of materials during May. Ceelo's standard cost of materials per unit produced is based on 3 pounds per unit at a cost $5.50 per pou
- Ceelo Company purchased (at a cost of $10,200) and used 2,400 pounds of materials during May. Ceelo's standard cost of materials, per unit produced, is based on 2 pounds per unit, at a cost $5 per pou
- Ceelo Company purchased (at a cost of $14,595) and used 2,100 pounds of materials during May. Ceelo's standard cost of materials per unit produced is based on 1 pounds per unit at a cost $7.00 per pou
- Thompson Company has a standard of 3.1 pounds of materials per unit, at $15.10 per pound. In producing 980 units, Thompson used 2,830 pounds of materials at a total cost of $44,500. What is Thompson's total materials variance? a. $1,767 Favorable b. $1,37
- Staley Company has a standard of 1.5 pounds of materials per unit, at $4 per pound. In producing 2,000 units, Staley used 3,100 pounds of materials at a total cost of $12,090. Staley's materials price variance is: A) $90 U. B) $310 F. C) $400 F. D) $7
- Wales Company purchased (at a cost of $10,800) and used 2,400 pounds of materials during May. Wales's standard cost of materials per unit produced is based on 2 pounds per unit at a cost of $5 per pound. Production in May was 1,070 units. a) Compute the
- Kirkland Company produces a product requiring 12.8 pounds of material costing $3.30 per pound. During December, the company purchased 4,500 pounds of material for $17,200 and used the material to produce 420 products. What was the materials price varianc
- A company manufactures decorative weather vanes that have a standard materials cost of two pounds of raw materials at $1.50 per pound. During September 5,000 pounds of raw materials costing $1.75 per pound were used in making 2,400 weather vanes. Determin
- Bradley Co. produced 3000 units in July. The standard costs show the following material standards per unit: 2 pounds at $.50 per pound = $1. During July, 8,000 pounds of material were purchased at a c
- Timo Company's standard materials cost per unit of output is $10 (2 pounds * $5). During July, the company purchased and uses 3,300 pounds of materials costing $16,764 in making 1,530 units of the finished product. Compute the total, price, and quantity
- Canevari Corporation makes a product that uses a material with the following standards: -Standard quantity 3.0 kilos per unit -Standard price $2.00 per kilo -Standard cost $6.00 per unit The compa
- Melrose Corporation makes a product that uses a material with the following standards: Standard quantity 8.4 pounds per unit Standard price $6.00 per pound Standard cost $50.40 per unit The compan
- The Shum Company makes a product, Z, from two materials: X and Y. The standard prices and quantities are as follows: X Y Price per pound$5$7 Pounds per unit of product Z169 In May, 12,500 units of
- Tools-N-Time has a standard of 1.5 pounds of materials per unit, at $4 per pound. In producing 2,000 units, Tools-N-Time used 3,100 pounds of materials at a total cost of $12,090. What is Tools-N-Time's total material variance? a. $300 F b. $90 U b. $310
- Garland Company uses a standard cost system. The standard for each finished unit of product allows for 3.9 pounds of plastic at $0.72 per pound. During December, Garland bought 4,300 pounds of plastic at $0.75 per pound and used 4,100 pounds in the produc
- 8. The materials handling charge for ABC corp is $.50 per pound of finished product. What is the materials handling charge for a job that produced 10,000 units and the weight of each product was 6 pounds?
- ToolTime has a standard of 1.5 pounds of materials per unit, at $4 per pound. In producing 2,000 units, ToolTime used 3,100 pounds of materials at a total cost of $12,090. ToolTime's materials quantity variance is _____.
- Based on a standard volume of output of 96,000 units per month, the standard cost of the product manufactured by Tahoc Company consists of: A total of 25.200 pounds of materials was purchased at S8.40
- Assume that the standard cost to make one unit of product includes 15 units of raw materials at a price of $3 per unit. In July, 34,000 units of raw materials were purchased for $100,800, and 30,600 units of raw materials were used to produce 2,000 units
- Dahl Company, a clothing manufacturer, uses a standard costing system. Each unit of a finished product contains 2 yards of cloth. However, there is unavoidable waste of 20%, calculated on input quantities, when the cloth is cut for assembly. The cost of t
- Leonesio Corporation makes a product that uses a material with the following standards: Standard quantity 8.2 (kilos per unit) Standard price $4.00 per kilo Standard cost $32.80 per unit The company
- Ceelo Company purchased (at a cost of $10,200) and used 2,400 pounds of materials during May. Ceelo's standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5 per pound. Production in May was 1,050 units. a) Compute the tota
- DeeDee Corporation manufactures the following products in its factory. $400,000 of costs were incurred. Product Units Produced Weight per Unit (lb) Selling Price per Unit A 2,500 10 $6 B 5,000 8 $12 C 7,500 6 $12 D 10,000 4 $6 How much joint cost would be
- The standard quantity allowed for the units produced was 6,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable. Each unit uses 1 pound of materials. How many units were actually produced? a. 6,350 b.
- The following standards have been established for a raw material used in the production of product O99: Standard quantity of the material per unit of output 2.6 pounds Standard price of the material $
- Martinez Company's relevant range of production is 7,500 units to 12,500 units. The average costs per unit when the company produces and sells 10,000 units are given below: | | Average cost per unit | Direct materials | $6.00 | Direct labor | $3.50 | Va
- Martinez Company's relevant range of production is 7,500 units to 12,500 units. The average costs per unit when the company produces and sells 10,000 units are as follows: | | Average cost per unit | Direct materials | $6.00 | Direct labor | $3.50 | Var
- Dillon has a standard of 1.5 pounds of materials per unit, at S6 per pound. In producing 2,000 units, Dillon used 3,100 pounds of materials at a total cost of $18,135 1. Dillon's material quantity variance is: a. $135 F b. $465 U
- A company uses 7,900 pounds of materials and exceeds the standard by 200 pounds. The quantity variance is $1,500 unfavorable. What is the standard price?
- Ceelo Company purchased (at a cost of $10,200) and used 2,400 pounds of materials during May. Ceelo's standard cost of materials per unit produced is based on 2 pounds per unit at a cost of $5 per pound. Production in May was 1,050 units. Instructions: A)
- Johnny Corporation makes a product that uses a material with a standard quantity of 8.2 per unit, standard price of $1.00 per kilo, and a standard cost of $8.20 per unit. The company budgeted for pro
- Assume that the standard cost to make one unit of product includes 15 units of raw materials at a price of $3 per unit. In July, 34,000 units of raw materials were purchased for $100,800, and 30,600 u
- Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3,100 pounds of materials at a total cost of $18,135. Dillon's materials quantity variance is ________. (a) $600 U. (b) $465 U. (c) $1,
- Melrose Corporation makes a product that uses a material with the following standards: Standard quantity 8.4 pounds per unit Standard price $6.00 per pound Standard cost $50.40 per unit The company budgeted for production of 5,800 units in September, but
- The standard cost of product P for Milsine Company includes an average of two units of materials at $4 per unit. During October, 16,000 units of materials were purchased at $4.08 per unit, and 17,000 units were issued to production. Equivalent production
- Hector Company has developed the following standard costs for its product for 2012: HECTOR COMPANY Standard Cost Card Product A |Cost Element | Standard Quantity |Standard Price |Standard Cost |Direct materials|
- Checking uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material purchased and used cost $105,000 and two units of raw material are required to produce one unit of final product. In March, the company prod
- Kimm Company has gathered the following information about its product: Each unit of product contains 4.20 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $4 per pound, but Kimm a
- Dvorak Company produces a product that requires five standard pounds per unit. The standard price is $2.50 per pound. Assume the company produced 1,000 units of product. 1,000 units required 4,500 pou
- Pitt Company uses standard costs to control materials costs. The standards call for 6 pounds of materials for each finished unit produced. The standard cost per pound of materials is $2.00. During May
- Aquatic Corp.'s standard material requirement to produce one "Model 2000" is 15 pounds of material @ $110.00 per pound. Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,
- Aquatic Corp.'s standard material requirement to produce one Model 2000 is 15 pounds of material at $110.00 per pound. Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,
- Martinez Company's relevant range of production is 8,700 units to 13,700 units. When it produces and sells 11,200 units, its unit costs are as follows: | | Amount Per Unit |Direct materials | $6.00 |Direct labor | $3.50 |Variable manufacturing overhead
- Canevari Corporation makes a product that uses a material with the following standards: Standard quantity 3.0 kilos per unit Standard price $2.00 per kilo Standard cost $6.00 per unit The company
- The following materials standards have been established for a particular product: Standard quantity per unit of output 5.1 pounds Standard price $13.90 per pound The following data pertain to operations concerning the product for the last month: Actual ma
- The following materials standards have been established for a particular product: Standard quantity per unit of output 3.8 pounds Standard price $13 per pound The following data pertain to operations concerning the product for the last month: Actual mater
- Shoemaker Perkins Company uses a standard cost system and had 410 pounds of raw material X15 on hand on September 1. The standard cost is $10.04 per pound. The standard calls for 2.00 pounds of materi