Carolina Tile Company Manufactures and Installs Industrial Tile Flooring

question 67

Essay

Carolina Tile Company manufactures and installs industrial tile flooring. In the current year, the company had anticipated producing and installing 50,000 tiles but actually produced installed 65,000 tiles. The standard direct materials cost for each square foot of tile is $5.60 comprised of 2.80 pounds of material at a cost of $2 per pound. During the year, 200,000 pounds of material were purchased out of which 190,000 pounds were used at a cost of $1.85 per pound.
Required: Compute each of the following variances. Indicate whether the variance is favorable (F) or unfavorable (U).

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Definitions:

Confining Pressure

The pressure applied equally in all directions on a rock or sediment layer, often increasing with depth in the Earth's crust.

Fluid Pressure

The pressure exerted by a fluid at equilibrium at any given point within the fluid, due to the force of gravity.

Columnar Joints

A geological feature where certain types of volcanic or igneous rock cool and shrink, forming vertical, polygonal columns of rock.

Internal Strain

Deformation within materials or geological structures due to applied stress.