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Coffey Company maintains a very large direct mater...

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Coffey Company maintains a very large direct materials inventory because of critical demands placed upon it for rush orders from large hospitals. Item A contains hard-to-get material Y. Currently, the standard cost of material Y is $2.00 per gram. During February, 22,000 grams were purchased for $2.10 per gram, while only 20,000 grams were used in production. There was no beginning inventory of material Y. Required: a) Determine the direct materials price variance, assuming that all materials costs are the responsibility of the materials purchasing manager. b) Determine the direct materials price variance, assuming that all materials costs are the responsibility of the production manager. c) Discuss the issues involved in determining the price variance at the point of purchase versus the point of consumption.,1. 1. Coffey Company maintains a very large direct materials inventory because of critical demands placed upon it for rush orders from large hospitals. Item A contains hard-to-get material Y. Currently, the standard cost of material Y is $2.00 per gram. During February, 22,000 grams were purchased for $2.10 per gram, while only 20,000 grams were used in production. There was no beginning inventory of material Y. Required: a) Determine the direct materials price variance, assuming that all materials costs are the responsibility of the materials purchasing manager. b) Determine the direct materials price variance, assuming that all materials costs are the responsibility of the production manager. c) Discuss the issues involved in determining the price variance at the point of purchase versus the point of consumption. 2. During February the Lungren Manufacturing Company's costing system reported several variances that the production manager was surprised to see. Most of the company's monthly variances are under $125, even though they may be either favorable or unfavorable. The following information is for the manufacture of garden gates, its only product: i. Direct materials price variance, $800 unfavorable. ii. Direct materials efficiency variance, $1,800 favorable. iii. Direct manufacturing labor price variance, $4,000 favorable. iv. Direct manufacturing labor efficiency variance, $600 unfavorable. Required: a) Provide the manager with some ideas as to what may have caused the price variances. b) What may have caused the efficiency variances?,hi sir by when you will answer these questions?,hi,are you online,hi michael m still waiting for the answer and how do i proceed further,hi i have some issue on the 1st question on: a If Price variance is responsibility of purchase manager In that case on the Beginning Inventory 0 Purchased 22000 2.1 46200 Standard Price 22000 2 44000 Price variance 4200 Is can you please tell what is the price variance answer is right or wrong please lemme me know in 1 hr need to submit the assingment its the last day. Thanks

 

Paper#7797 | Written in 18-Jul-2015

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