19. Flying High Company manufactures model airplanes. During the month, it manufactured 10,000airplanes. Each one used an average of 6.5 direct lebor hours and an average of 1.5 sheets ofaluminum. It nomally manufactures 7,500 airplanes. Materials and labor standards for makingthe airplanes areDirect Materials (1 sheet of aluminum S10.00) $10.00Direct Materials (other accessories $8.75) 8.75Direct Labor (6 hours $7.00) 42.00Compute the standard number of sheets of aluminum allowed for a volume of 10,000 airplanesO7,500 shostsO 0 etO 1LDe sheetsO I5.000 shects20. Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgetedfxed costs of $600,000. The standard allows one direct labor hour per unit. Last year, Crawfordproduced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded212,000 actual hours of direct labor.What is Crawford's fixed overhead spending variance for last year?O s000 uO 000FO s36,000 u

Direct materials and direct labor are the components which are used in the manufacturing of goods,…

Answered: 19. Flying High Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $14.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.4 Ibs. Standard price per Ib. of brass $11.75 Actual price per Ib. of brass $12.00 Actual Ibs. of brass used during the week 10,382 Ibs. Number of units produced during the week 7,200 Actual wage per hour $14.83 Actual hours for the week (40 employees × 35 hours) 1,400 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit 2$ Direct labor standard cost per unit Total standard cost per unit b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.…
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 24 minutes $ 6.00 $ 2.40 During August, 8,380 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $48,604 for the month. Required: 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $40,224 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
Cozy, Inc., manufactures small and large blankets. It estimates $389,225 in overhead during the manufacturing of 97,902 small blankets and 73,121 large blankets. What is the predetermined overhead rate per machine hour if a small blanket takes 7 machine hour and a large blanket takes 9 machine hours? Round to the nearest penny, two decimal places.
Your Brother's Company manufactures lights. Each light uses $15 in direct materials and $5 in direct labor per unit. Way has two activities: Machining, which is applied at the rate of $3 per machine hour, and Finishing, which is applied at the rate of $16 per batch. This month, Way made 250 lights, using 1,500 machine hours in 47 batches. What is the total manufacturing cost for one light? O $21 O $36 $41 O $26
Heath Production manufactures chairs. Several weeks ago, the company received an enquiry from Rose Limited. Rose wants to market a foldable chair similar to one of Heath’s and has offered to purchase 12 000 units if the offer can be completed in three months. The cost data for Heath’s foldable chair is as follow: Direct material $16.40 Direct labour (0.125 @ $36 per hour) 4.50 Total manufacturing overhead 20.00 Total $40.90 The normal selling price of Heath’s foldable chair is $51.00. However, Rose has offered Heath only $31.50 because of the large quantity it is willing to purchase. Rose requires a modification of the design that will allow a $4.20 reduction in direct material cost. The production manager of Heath notes that the company will incur $8400 in additional setup costs and will have to purchase a $5800 special equipment to…
5) Rainbow Painting Services Inc. paints interiors of residents and commercial structures. The firm management has established cost standards based on the amount of area to be painted: Direct material ($18 per gallon of paint); $1.50 per 100 square feet Direct labor: $2 per 100 square feet; 400 square feet per hour per worker Variable overhead: 0.60 per 100 square feet Fixed overhead (based on 600,000 square feet er month) $1.25 per 100 square feet The company painted 600,000 square feet of wall and ceiling space. The following costs were incurred: Direct Material (450 gallons purchased and used) Direct Labor (1,475 hours) Variable overhead $8,550/ 450 =act 12,390 3,422 7,740 Fixed overhead Compute the following variances indicating whether each is favorable or unfavorable. (10 Points) Std price $18, act 19 1. Direct material price variance 2. Direct material usage variance 3. Direct labor rate variance 4. Direct labor efficiency variance 5. Variable overhead efficiency variance 6.…
Anemone Company produces picture frames. During the year, 200,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $3) $6.00 Direct labor (2 hours @ $12) $24.00 Anemone purchased and used 600,000 pieces of wood at $4.00 each, and its actual labor hours were 320,000 hours at a wage rate of $13. What is Anemone's labor rate variance? a. $450,000 F b. $320,000 U c. $445,000 U d. $660,500 F
Quality Guard, which used a standard cost accounting system, manufactured 200,000 boat fenders during the year, using 1,250,000 feet of extruded vinyl purchased at $1.20 per foot. Production required 4,000 direct labor hours that cost $12.50 per hour. The materials standard was 6 feet of vinyl per fender at a standard cost of $1.35 per foot. The labor standard was 0.026 direct labor hour per fender at a standard cost of $12.00 per hour. Read the requirements. Requirement 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials, DL = Direct labor.) Begin with the variances for direct materials. First, determine the formula for the direct materials price variance, then compute the price…
Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $2.25) $4.50 Direct labor (2 hours @ $10) $20.00 Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50. What is Seaside's labor rate variance? a.$217,500 F b.$225,000 U c.$180,000 U d.$180,000 F
AbC Company is a Contracting Company that builds custom- made boats. It received from Marvelous Boating Company (MBC) an order to build 5 custom-made boats. The boats are to be delivered in 6 months with the first two to be delivered in the next two months. The following costs are incurred for the TW0 boats to be delivered in two months time:Direct Materials $ 1 80,000 Direct Labor $200,000 Manufacturing Overhead is applied at 150% of Direct Labor. How much is the Cost for each Job completed?
Ashavinbhai
Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $2.25) $4.50 Direct labor (2 hours @ $10) $20.00 Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50. Refer to Figure 10-5. What is Seaside's labor rate variance? $180,000 F $180,000 U $225,000 U $217,500 F

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