Data TableAC × AQ SC × AQ SC × SQ$0.65 per pounds $0.30 per pounds $0.30 per pound× × ×7,600 pounds 7,600 pounds 7,200 pounds$4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U $120 U .RecordSmithson'sdirect materials journal entries. Assume purchases were made on account.2.Explain what management will do with this variance information.

Name: Data TableAC × AQ SC × AQ SC × SQ$0.65 per pounds $0.30 per pou
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Description: Data TableAC × AQ SC × AQ SC × SQ$0.65 per pounds $0.30 per pounds $0.30 per pound× × ×7,600 pounds 7,600 pounds 7,200 pounds$4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U

The following information is provided : AC × AQ SC × AQ SC × SQ…

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Data Table AC × AQ SC × AQ SC × SQ $0.65 per pounds $0.30 per pounds $0.30 per pound × × × 7,600 pounds 7,600 pounds 7,200 pounds $4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U $120 U

Data Table AC × AQ SC × AQ SC × SQ $0.65 per pounds $0.30 per pounds $0.30 per pound × × × 7,600 pounds 7,600 pounds 7,200 pounds $4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U $120 U

Accounting Information Systems

11th Edition

ISBN:9781337552127

Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Chapter15: Integrated Production Processes (ipps)

Section: Chapter Questions

Problem 4P

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

100%

Data Table

AC × AQ

SC × AQ

SC × SQ

$0.65 per pounds

$0.30 per pounds

$0.30 per pound

7,600 pounds

7,200 pounds

$4,940

$2,280

$2,160

Cost

Efficiency

Variance

$2,660 U

$120 U

.	Record Smithson's direct materials journal entries. Assume purchases were made on account.
2.	Explain what management will do with this variance information.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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