Materials Quantity Variance:Solving for Actual Quantity

question 3

Essay

Materials Quantity Variance:Solving for Actual Quantity
Todco planned to produce 3,000 units of its single product,Teragram,during November.The standard specifications for one unit of Teragram include six pounds of material at $0.30 per pound.Actual production in November was 3,100 units of Teragram.The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of $120.
Required:
Based on these data,calculate how many pounds of material were used in the production of Teragram during November.

Comprehend the mechanics and applications of backflush costing systems.

Understand the assumptions and calculations involved in determining the break-even point for products.

Analyze the entire value chain and its significance in management accounting for strategic decision-making.

Understand the factors affecting production lead time and efficiency in production processes.

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Definitions:

Exponential Smoothing Model

A time series forecasting method that applies weighted averages of past observations, decreasing exponentially as the observations get older.

Mean Square Error

A statistical measure used to evaluate the accuracy of a model by calculating the average squared difference between the estimated values and the actual value.

Smoothing Constant

A Smoothing Constant is a parameter used in exponential smoothing models for forecasting, which controls the weight given to the most recent observation.

Regression Method

A statistical process for estimating the relationships among variables, often used to predict the value of a dependent variable based on one or more independent variables.